Postponement option(redirected from Postponement Options)
The option of deferring a project without eliminating the possibility of undertaking it.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The ability or decision to delay a planned project without canceling it. This decision is undertaken if a party, often a financial backer, wants to undertake a project but unexpectedly lacks the capital to do so. In the case of a new issue of a stock or bond, the postponement option may be exercised if the issuer believes that demand for the issue will be low. In some cases, it may simply be an indication that a financial backer is no longer interested in a project.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved