Nonassessable Stock Law and Legal Definition

Nonassessable stock refer to a class of stock owned by a holder whose potential liability is limited to the amount paid for the stock and who cannot be charged additional funds to pay the issuer's debts. In other words for these type of stock the issuing company is not allowed to impose levies on its shareholders for additional funds for further investment. Mostly such stock will have the words "fully paid and non-assessable" printed on the stock certificate. In U.S. the stock issued are usually nonassessable.