Assessable Capital Stock


DEFINITION of 'Assessable Capital Stock'

The capital stock of any bank or financial institution that could be subject to assessment. Assessable capital stock makes shareholders liable for an amount greater than what they paid for their stock. However, the assessment of this stock only takes place in the event of bankruptcy or insolvency.

BREAKING DOWN 'Assessable Capital Stock'

Any capital stock that can be called and is not fully paid for can technically be referred to as assessable capital stock. However, the term is generally reserved for stock of banks or other financial institutions. Obviously, assessment of this stock will usually lead to a loss for the shareholders.

  1. Capital

    1) Financial assets or the financial value of assets, such as ...
  2. Assessment

    Occurs when an asset's value must be determined for the purpose ...
  3. Common Stock Equivalent

    Securities such as stock options, warrants, preferred bonds, ...
  4. Stock

    A type of security that signifies ownership in a corporation ...
  5. Capital Stock

    The common and preferred stock a company is authorized to issue, ...
  6. Common Stock

    A security that represents ownership in a corporation. Holders ...
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