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.