Legal Definitions - paid-up stock

Definition: Paid-up stock is a type of stock that has been fully paid for by the shareholder and no further payments can be demanded by the issuing company.

Example: If a company issues 100 shares of paid-up stock and a shareholder buys 10 shares, they must pay the full price for those 10 shares upfront. The shareholder cannot be asked to pay any more money for those shares in the future.

Explanation: Paid-up stock is different from other types of stock, such as assessable stock, which can be subject to resale by the issuer if the holder fails to pay any assessment levied on it. Paid-up stock is fully paid for and the shareholder has no further financial obligation to the company. This type of stock is often used by companies to raise capital for their operations.