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. In a stock sale, the buyer acquires equity from the target company's shareholders.A stock sale is when you buy the stock of a business. This means when you purchase the stock, you inherit all the known and unknown liabilities. Tax advantages: In an asset sale, there is typically no taxable event for the purchaser (although there is for the seller). Stock Sale might carry hidden liabilities, while Asset Sale offers customization. In this case, the stock sale is ignored for tax purposes, and both buyer and seller will be treated as though an asset sale occurred. An asset is ideal if you want more demand and a higher sale price, while a stock sale is ideal if you want to sell sooner and at favorable tax terms. For the sellers in a stock sale, any profits are typically taxed as capital gains, regardless of the target's legal structure.