Stock Purchase
/ˈstɒk ˈpɜːrtʃəs/
Definitions
- (n.) A contractual agreement whereby a buyer acquires shares of stock in a corporation from a seller.
The parties executed a stock purchase to transfer ownership of the shares.
- (n.) The transaction involving the purchase of equity interests, often involving negotiation of terms concerning price, warranties, and representations.
Due diligence is critical before completing a stock purchase.
Forms
- stock purchase
- stock purchases
Related terms
See also
Commentary
A stock purchase typically contrasts with an asset purchase; drafters should specify whether the transaction covers shares or assets to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.