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An asset purchase involves the purchase of the selling company's assets -- including facilities, vehicles, equipment, and stock or inventory. A stock purchase involves the purchase of the selling company's stock only.
In an asset purchase, the buyer agrees to purchase specific assets and liabilities.In a stock purchase, the buyer purchases the entire company, including all assets and liabilities.
This Stock Purchase Agreement (sometimes called an Share Purchase Agreement or SPA) sets forth terms of the sale and transfer of a company's stock to a purchaser. Stock Purchase Agreements are often used to effect the acquisition of a company through the purchase of the majority of stock in that company.
Name of company. Par value of shares. Name of purchaser. Warranties and representations made by the seller and purchaser. Possible employee issues such as benefits and bonuses. How many shares are being sold. Where and when the transaction takes place.