puttable common stock

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.

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.
References in periodicals archive ?
Dreyer's has ended its put period--when shareholders of Dreyer's Class A Callable Puttable Common Stock could sell up at purchase price.
Since a portion of puttable common stock is treated as equity, it is treated less like a liability than is the 100-year MRPS in the prior example, even though the puttable common stock reduces the solvency of the firm to a far greater extent.
Their example illustrates how accounting for convertible debt and puttable common stock, two economically similar financing instruments, differs under the ED.
Examples are convertible bonds and puttable common stock. A convertible bond combines an obligation to pay cash-a liability-and an obligation to issue stock if the holder elects to convert the bond.
Holders of Class A Callable Puttable Common Stock will be permitted to sell some or all of their shares to Dreyer's Holdings for $83.00 per share during two periods in the future, the first beginning on Dec.