Assessable Security

Filed Under » ,
Dictionary Says

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 Says

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.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Convertible Security

    An investment ...
  2. Convertible Preferred Stock

    Preferred stock ...
  3. Residual Security

    A convertible ...
  4. Security

    A financial ...
  5. Generic Securities

    A security ...
  6. Assessable Capital Stock

    The capital ...
  7. Agency Bond

    A bond issued by ...
  8. Convertible Arbitrage

    An investing ...
  9. Liquidation

    1. When a ...
  10. Canada Savings Bond - CSB

    A financial ...

Articles Of Interest

  1. The 4 Ways To Buy And Sell Securities

    Know the four main avenues of buying and selling investment instruments.
  2. Uncovering The Securities Firm

    Learn about the various departments of a securities firm and the professionals who make it work.
  3. 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!
  4. Introduction To Convertible Preferred Shares

    These securities offer an answer for investors who want the profit potential of stocks but not the risk.
  5. 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.
  6. Benefit From Borrowed Securities

    Find out what your broker is doing with your securities when you invest on margin.
  7. 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?
  8. This Is Your Brain On Stocks

    Find out how the human mind can hurt investors' portfolios.
  9. Should You Invest Your Entire Portfolio In Stocks?

    It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.
  10. 5 Tips For Diversifying Your Portfolio

    A diversified portfolio will protect you in a tough market. Get some solid tips here!

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center