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A puttable provision is a feature in a bond or financial instrument that allows the holder to sell the security back to the issuer at specified times before maturity, typically at face value. This provision provides investors with a degree of protection against rising interest rates or deteriorating credit quality, as they can "put" the bond back to the issuer instead of holding it to maturity. It enhances the bond's attractiveness, often resulting in a lower yield compared to similar securities without such a feature.
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What is puttable upon the death of the holder?
A puttable security is a financial instrument that can be sold back to the issuer at a predetermined price upon the death of the holder.
What happens to a CD puttable upon death of the holder?
When a CD is puttable upon the death of the holder, it means that the beneficiary or estate of the deceased holder has the option to redeem the CD early without penalty.
What happens to the puttable upon death of holder feature in a financial instrument?
When the holder of a financial instrument with a puttable feature dies, the ability to sell back the instrument at a predetermined price is typically transferred to their estate or beneficiaries.
Can you explain what "puttable upon death" means?
"Puttable upon death" refers to a financial instrument, such as a bond or a security, that can be redeemed or sold back to the issuer upon the death of the holder. This feature allows the holder's beneficiaries to receive the value of the investment upon the holder's passing.
What does "puttable on death of holder" mean in terms of financial investments?
"Puttable on death of holder" means that the investment can be sold back to the issuer at a predetermined price upon the death of the investor. This feature provides a way for the investor's heirs to easily liquidate the investment after the investor passes away.
What is the process for exercising the puttable option upon the death of the holder?
When the holder of a puttable option dies, the process for exercising the option typically involves the executor of the deceased holder's estate contacting the financial institution or broker where the option is held. The executor will provide the necessary documentation, such as a death certificate and proof of authority to act on behalf of the estate, to initiate the exercise of the puttable option. The financial institution or broker will then facilitate the exercise of the option according to the terms outlined in the option agreement.
What does "puttable upon death of holder" mean in terms of financial investments or assets?
"Puttable upon death of holder" means that the investment or asset can be sold back to the issuer or another party upon the death of the holder. This feature allows the holder's beneficiaries to liquidate the investment quickly and easily after the holder passes away.
What is the process for exercising a puttable on death of holder option?
Exercising a puttable on death of holder option involves the beneficiary or estate of the deceased holder notifying the financial institution or issuer of the option of the holder's passing, providing necessary documentation, and following the specific procedures outlined in the option agreement to redeem the option for its cash value.
What is a puttable upon death of holder CD and how does it work?
A puttable upon death of holder CD is a type of certificate of deposit that allows the holder to redeem the CD for its full value upon their death. This means that if the holder passes away before the CD matures, their beneficiaries can cash out the CD without any penalties. This feature provides added flexibility and security for the holder and their loved ones.
What is the entry of tds provision?
For a provision you initially debit cost and credit provision. When the provision is released you debit your provision and credit cash. The provision should be adjusted to present value on your balance sheet.
What is hauling of provision?
hauling of provision
Is shanghai is a provision of china?
It is a city not a provision.
