Non-Assessable Stock

Non-Assessable Stock
A class of stock in which the issuing company is not allowed to impose levies on its shareholders for additional funds for further investment. Non-assessable stocks typically have the words "fully paid and non-assessable" printed on the stock certificate.

These are the opposite of assessable stocks.

Assessable stocks proved unpopular, and most companies switched over to issuing non-assessable stock in the early 1900s . Although equity was no longer sold at a discount compared to its share price, investors were more confident about buying non-assessable stocks because they no longer had to worry about the possibility that the issuer would force them to make more investments after the initial transaction.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • Assessable Stock — A class of stock in which the issuing company is allowed to impose levies on stockholders for more funds. In the past, there was no restriction on how much additional money a company could demand or on how often a company could impose a levy on… …   Investment dictionary

  • non-assessable — This word, placed upon a certificate of stock, does not cancel or impair the obligation to pay the amount due upon the shares created by the acceptance and holding of such certificate. At most its legal effect is a stipulation against liability… …   Black's law dictionary

  • non-assessable — This word, placed upon a certificate of stock, does not cancel or impair the obligation to pay the amount due upon the shares created by the acceptance and holding of such certificate. At most its legal effect is a stipulation against liability… …   Black's law dictionary

  • stock — The goods and wares of a merchant or tradesman, kept for sale and traffic. In a larger sense, the capital of a merchant or other person, including his merchandise, money, and credits, or, in other words, the entire property employed in business.… …   Black's law dictionary

  • nonassessable — | ̷ ̷+ adjective Etymology: non (I) + assessable : exempting the owner from further contributions to the capital or business of an issuing corporation and when fully paid for entailing no further liability on the part of the owner either to the… …   Useful english dictionary

  • equity — Synonyms and related words: Code Napoleon, Corpus Juris Canonici, Napoleonic code, Roman law, absolute interest, admiralty law, assessable stock, authorized capital stock, balance, benefit, blue chip, blue chip stock, blue law, body of law,… …   Moby Thesaurus

  • nonassessable — nonassessability, n. /non euh ses euh beuhl/, adj. (of stock) exempting the investor from any expense or liability beyond the amount of his or her investment. [NON + ASSESSABLE] * * * …   Universalium

  • insurance — A contract whereby, for a stipulated consideration, one party undertakes to compensate the other for loss on a specified subject by specified perils. The party agreeing to make the compensation is usually called the insurer or underwriter; the… …   Black's law dictionary

  • insurance — A contract whereby, for a stipulated consideration, one party undertakes to compensate the other for loss on a specified subject by specified perils. The party agreeing to make the compensation is usually called the insurer or underwriter; the… …   Black's law dictionary

  • security — Protection; assurance; indemnification. The term is usually applied to an obligation, pledge, mortgage, deposit, lien, etc., given by a debtor in order to assure the payment or performance of his debt, by furnishing the creditor with a resource… …   Black's law dictionary

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