Stock Sale
In making the decision to purchase an existing business, it is necessary for the buyer to determine whether they are going to purchase the assets of the business, or the stock of the business entity. An asset purchase involves the purchase of the selling company's assets -- including facilities, vehicles, equipment, and stock or inventory. A stock purchase (which becomes a Stock Sale) involves the purchase of the selling company's stock only.
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Common Compensation Terms and Formulas
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