Stock, the owners of which cannot legally be compelled to make additional payments upon the same, in case of failure of the corporation, or for any other reason. National bank stocks are "assessable " (See "Double Liability "); that is, the owners can be forced to make additional payments in case of failure. It often states on a stock certificate that it is "non-assessable,"if such is the case. The State laws under which the corporation is chartered may have much to do with the assessability or non-assessability of the stock. Assessments may be made, in case it can be proved that a certain stock had not been "fully paid "when originally issued, and the existence of fraud demonstrated; provided, of course, the laws demanded the issuance of "fully paid" stock. A word of warning: do not be misled by statements that a stock is non-assessable. If the corporation becomes bankrupt it may become necessary for the stockholders to make some cash contribution to put the company on its feet again, if the stockholders would not lose their equity. Of course, they would be under no legal obligation to contribute.

In case of the shares of a transportation company, the holder of which may be liable for "assessment," considerable risk may attend the owning of the same. Some large accident might involve the company in such a loss for damages, as to call for an "assessment." This liability should always be given proper thought in buying any stock. No stock carries more than "double liability." Never "indorse in blank" a stock subject to assessment, but have it transferred to the purchasing party. (See "Transfer in Blank.")

1 For exceptions see foot-note under "Double Liability."

Non-Clearing-House Stocks. Stocks which are not active, and which are not "cleared " is understood.

Non-Contingent Preference Stock. Described under "Preferred Shares."