Legal Definitions - assessable stock

Assessable stock is a type of stock that can be resold by the issuer if the holder fails to pay any assessment levied on it. This means that if the company needs more money, they can charge the stockholders an additional amount, and if the stockholder doesn't pay, the company can take back the stock.

For example, if a company needs to raise more money, they may levy an assessment on their assessable stock. If a stockholder fails to pay the assessment, the company can take back the stock and sell it to someone else who is willing to pay the assessment.

Assessable stock is not commonly used today, as most stocks are non-assessable, meaning that the stockholder's liability is limited to the amount paid for the stock and they cannot be charged additional funds to pay the issuer's debts.