1. In bond trading, a bond indenture that gives the bondholder the right to demand redemption before maturity at its high par value in case certain event happen. Such pre-designated events include restructuring of the bond issuing company, excessive dividend distribution to its stockholders, a leveraged buyout, or a hostile takeover attempt. A poison put helps the management of the target company to deter the takeover attempt by making it very costly for the bidder. In times of low liquidity, however, this put works against the management as the bond holders can pressure the company into a reorganization or to increase its borrowing costs. 2. In stocks trading, the rights assigned to common stockholders that sharply escalates the price of their stockholding, or allows them to purchase the company's shares at a very attractive fixed price, in case of a hostile takeover attempt. also called event risk covenant.

Related information about poison put:

1. What is poison put? definition and meaning
   Definition of poison put: In bond trading, a bond indenture that gives the bondholder the ... A poison put helps the management of the target company to deter the ...
    
2. Poison Put - Financial Dictionary - The Free Dictionary
   A covenant allowing the bondholder to demand repayment in the event of a hostile takeover. Poison-Put Bond. A bond that allows bondholders to redeem before ...
    
3. Poison Put - definition of Poison Put by the Free Online Dictionary ...
   A plan or tactic intended to make a hostile corporate takeover prohibitively expensive, as one in which a company's stockholders are offered shares of stock at a ...
    
4. Poison Put: Definition from Answers.com
   provision in an indenture giving bondholders the privilege of redemption at par if certain designated events occur, such as a hostile takeover, the purchase.
    
5. Poison put definition
   Poison put is a bond indenture that allows bondholders to demand redemption of the security before it's maturity at a high par.
    
6. 'Poison Puts' Undercut Mergers - WSJ.com
   Apr 14, 2009 ... But the poison put is playing an unnoticed role in preventing a wave of deals. When a company takes out a loan or issues debt, the contract ...
    
7. poison put - Invest Definition
   poison put definition: A provision in a bond or note that gives bondholders the option of redeeming the bond or note at its par value if certain events occur.
    
8. Poison Put
   (1) A provision of a bond or note which makes the instrument puttable to the issuer following a change of control or a restructuring which reduces the credit ...