puttable common stock

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Puttable Common Stock

Common stock in a publicly-traded company that an investor may sell back to the issuing company at a certain price. This price is determined when the stock is issued. Generally, the price is relatively low in order to discourage abuse of the option, but it protects the investor from the risk that the share price will collapse.
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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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.