A financial instrument that confers on the holder the right, without an obligation, to return (put back) the instrument to the issuer for cash or any other form of financial assets. Furthermore, the instrument may also entail the right to put back, automatically, once an uncertain future event takes place or in the case its holder ceases to exist (e.g., death, retirement, etc.)

A puttable financial instrument is embedded with a put option (non-tradable). The way a puttable instrument is recognized on the financial statements depends on classification: as equity instrument, financial liability, etc. Reclassification may be prompted by failure to meet specific criteria in the original classification. For hybrid instruments (or compounded instruments), that are partially equity and partially liability, classification would also be partial: part equity and part liability.