transferable put right

transferable put right definition - business

transferable put right

An option granted by a corporation to its shareholders that permits the shareholders to sell stock back to the corporation at a stipulated price. Shareholders who do not wish to exercise the options are permitted to sell the put rights to other investors. Issuing transferable put rights is an alternative to a tender offer or open market purchases as a form of share repurchase.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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