Non-Assessable Stock

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DEFINITION of '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.

INVESTOPEDIA EXPLAINS 'Non-Assessable Stock'

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.

RELATED TERMS
  1. Stock

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  2. Issuer

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  3. Assessable Stock

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  4. Discount

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    1. A stock or any other security representing an ownership interest. ...
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    Shareholders who hold their shares directly with a company.
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