A bond that allows an investor to cash in a security before maturity if the issuer becomes the target of a takeover bid hostile to its management. Poison-put bonds make it expensive for the bidder to buy the target firm, because the bidder will have to raise cash to pay off the owners of the bonds. The bonds can benefit the bondholders, who can cash in the securities if the takeover spawns a new, more highly leveraged high-risk corporate entity. See also poison pill.