What is 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. Read more for examples and further explanation including related video clips and also comments
Example 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.
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