These are the opposite of non-assessable stocks.
Before the twentieth century, assessable stocks were the prevalent type of equity that companies would issue. In order to entice investors into buying this potentially expensive stock, issuers would initially sell the stock at a discount.
For example, an assessable stock has an initial capitalization of $20, but the issuer would sell the stock with a 75% discount ($5). Naturally, seeing how the issuer only received a small fraction of the capitalization, companies would almost always come back to investors for more money. In some cases, companies would eventually take more money than the value of the stock.
However, because all stocks issued today are non-assessable stocks, investors should not have to worry about a company making demands for more money.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
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… … Investment dictionary
stock — The goods and wares of a merchant or tradesman, kept for sale and traffic. In a larger sense, the capital of a merchant or other person, including his merchandise, money, and credits, or, in other words, the entire property employed in business.… … Black's law dictionary
stock — Synonyms and related words: Animalia, Broadway, ability, abundance, acceptation, accepted, acception, accommodate, accumulate, accumulation, accustomed, acquiescence, affiliation, afford, allotment, allowance, amass, amassment, ancestor, ancestry … Moby Thesaurus
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… … Investment dictionary
assessable capital stocks — In the USA 1) Capital stock of banks, subjecting stockholders to liabilities in excess of the sum originally subscribed 2) Capital stock not fully paid and therefore subject to calls … Accounting dictionary
non-assessable — This word, placed upon a certificate of stock, does not cancel or impair the obligation to pay the amount due upon the shares created by the acceptance and holding of such certificate. At most its legal effect is a stipulation against liability… … Black's law dictionary
blue chip — Synonyms and related words: assessable stock, authorized capital stock, blue chip stock, borrowed stock, capital stock, common stock, convertible preferred stock, corporate stock, cumulative preferred stock, cyclical stock, defensive stock,… … Moby Thesaurus
equity — Synonyms and related words: Code Napoleon, Corpus Juris Canonici, Napoleonic code, Roman law, absolute interest, admiralty law, assessable stock, authorized capital stock, balance, benefit, blue chip, blue chip stock, blue law, body of law,… … Moby Thesaurus
industrials — Synonyms and related words: assessable stock, authorized capital stock, blue chip, blue chip stock, borrowed stock, capital stock, common stock, convertible preferred stock, corporate stock, cumulative preferred stock, cyclical stock, defensive… … Moby Thesaurus
split — Synonyms and related words: ablate, abrupt, absquatulate, abysm, abyss, aggravated, agree to disagree, alienate, alienation, allot, amputate, aperture, apportion, arroyo, assessable stock, atomize, authorized capital stock, ax, be in stitches,… … Moby Thesaurus