What are Nonassessable shares?

Non-assessable refers to a class of shares that do not allow the issuer to demand additional payment for the shares from stockholders. The majority of shares are currently non-assessable.

What are fully paid shares?

Fully paid shares are shares issued for which no more money is required to be paid to the company by shareholders on the value of the shares. Fully paid shares differ from partially paid shares, in which only a portion of the market value has been received by the company.

What is an assessable security?

Assessable stock was a type of stock issue sold to investors at a discount in exchange for the right to come back for more money at a later date. Assessable stock was sold at a discount, but the company could come back for additional funds at a later date. Assessable stock is no longer in use.

What is non assessable non exempt income?

Non-assessable non-exempt income (NANE) is ordinary or statutory income that is expressly made neither assessable income nor exempt income by a provision of the tax legislation or any other Commonwealth law.

What are the two types of shares?

Shares can be further categorized into two types. These are: Equity shares. Preference shares.

What is an assessment on shares?

Definition. The term assessments on capital stock refers to a provision that allows a company to charge shareholders an additional amount above the price paid. Assessable capital stock is allowed by some states, and is typically associated with shares issued by financial institutions.

What does non assessable mean?

Definition of nonassessable : exempting the owner from further contributions to the capital or business of an issuing corporation and when fully paid for entailing no further liability on the part of the owner either to the corporation or its creditors nonassessable stock.

What does non assessable policy mean?

Nonassessable — the term refers to an insurance policy under which the insurer (e.g., a stock company) does not have the right to assess policyholders for additional amounts to make up shortfalls in the cost of operating the company. Such a policy is the opposite of one issued by an assessment company.

What does fully paid and non-assessable shares of common stock mean?

This vintage Pennsylvania Power & Light Company common stock certificate for 20 shares, dating from 1973, contains the phrase “fully paid and non-assessable shares of the common stock without nominal or par value.” The phrase is common for boilerplate language. Investopedia requires writers to use primary sources to support their work.

Fully paid shares are shares issued for which no more money is required to be paid to the company by shareholders on the value of the shares.

What is a non-assessable stock?

Non-Assessable Stock. Reviewed by Will Kenton. Updated Feb 13, 2018. A non-assessable stock is a class of stock in which the issuing company is not allowed to impose levies on its shareholders for additional funds for further investment. The maximum liability the purchaser of the stock assumes is equal to the initial purchase price of the shares.

Can a company issue partially paid shares?

Typically, partially paid shares are only issued to a shareholder if there are compelling business reasons to do so. For instance, a company may intend to issue shares to a strategically aligned partner, who has insufficient funds to pay for all the shares at the time of issue.