Homonym: put (Place)
A "put" is a type of financial option that gives the holder the right, but not the obligation, to sell a specific asset, such as a stock, at a predetermined price within a certain time frame. Investors typically buy puts when they expect the price of the asset to decline, allowing them to sell at a higher price than the market value.
In trading, puts are often used as a form of insurance against potential losses. For example, if an investor owns shares of Company A and fears a drop in its price, purchasing a put option can help mitigate losses by allowing them to sell the shares at the agreed price, even if the market price falls.