Assessable Security
Definition of 'Assessable Security'A type of stock that companies issued to investors at a discount to its face value in exchange for the right to come back for more money at a later date. Assessable securities cannot be assessed for more than the difference between the purchase price and face value. In other words, if you bought an assessable stock with a face value of $20 for just $2, the company might later ask you for another $18 if it needed more money. Under Rule 136 of the Securities Act of 1933, the issuing company could resell the stock if the holder did not pay the assessment. |
|
Investopedia explains 'Assessable Security'Assessable stock has not been traded or issued in the United States for decades, but assessable stock is still a topic on the Series 63 exam. Exam takers are required to know that a gift of assessable stock is considered a sale. Today, all securities are non-assessable, and if companies need to raise more money, they issue additional stock or bonds. |
Related Definitions
Articles Of Interest
-
Introduction To Convertible Preferred Shares
These securities offer an answer for investors who want the profit potential of stocks but not the risk. -
Uncovering The Securities Firm
Learn about the various departments of a securities firm and the professionals who make it work. -
The 4 Ways To Buy And Sell Securities
Know the four main avenues of buying and selling investment instruments. -
How To Profit From Debt Securities In Failing Companies
Learn about the vulture funds that prey on the market's weakest companies by investing in distressed debt. -
Selling Losing Securities For A Tax Advantage
Tax-loss harvesting can help you to reduce taxes on your portfolio gains, but make sure you know the rules! -
Benefit From Borrowed Securities
Find out what your broker is doing with your securities when you invest on margin. -
Auction Rate Securities: Bidding On The Long Run
These investments do better with a long-term horizon. Should you buy them before they're going, going, gone? -
How Risk Free Is The Risk-Free Rate Of Return?
This rate is rarely questioned - unless the economy falls into disarray. -
Top 4 Most Scandalous Insider Trading Debacles
Here we look at some of the landmark incidents of insider trading. -
Nobel Winners Are Economic Prizes
Before you try to profit from their theories, you should learn about the creators themselves.
Free Annual Reports