An asset sale is the purchase of individual assets and liabilities, whereas a stock sale is the purchase of the owner's shares of a corporation. For the sellers in a stock sale, any profits are typically taxed as capital gains, regardless of the target's legal structure.In a stock sale, the buyer acquires equity from the target company's shareholders. Stock Sale might carry hidden liabilities, while Asset Sale offers customization. While an asset sale outshines a stock sale in company structure support, it loses a fair amount of points when it comes to tax implications. A seller may pay higher income taxes in an asset sale. This discussion focuses only on the tax treatment of a particular transaction. A stock or equity sale transaction involves the sale of the equity interests in a target company from the equity holders to a buyer. What is a Tax Foreclosure?