puttable common stock

Puttable Common Stock

Common stock that gives investors the option to put the stock back to the company at a predetermined price.

Notes:

With puttable common stock, investors have the option of selling their shares back to the issuer at a predetermined price. Typically, this price is relatively low, so the option to put acts merely as a type of insurance for investors, sweetening the security.

See also: Callable Bond, Common Stock, Parent Company, Put Bond, Subsidiary, Sweetener

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puttable common stock

The shares of common stock that are sold with rights to put the shares back to the issuer at a specified price. Compare callable common stock.