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.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. Stock Sale might carry hidden liabilities, while Asset Sale offers customization. For the sellers in a stock sale, any profits are typically taxed as capital gains, regardless of the target's legal structure. A seller may pay higher income taxes in an asset sale. This discussion focuses only on the tax treatment of a particular transaction. The purchase price less the basis equals the gain on the sale of stock to the shareholder. The asset sale closed six months later on July 2, 2001.