How it works
For both buyers and sellers of corporate stocks, creating a Stock Purchase Agreement is a great way to help protect your rights and obligations. By outlining the value of each share and setting a date for the sale, you'll have some assurance that the stock sale will take place. You'll also have a written record in case there are any questions about the agreement.
A Stock Purchase Agreement explains the terms of a stock purchase between the owner of corporate stock and another party. The stock owner can be the corporation itself, or one of the corporation's shareholders. Whether you're the buyer or the seller, having an agreement in writing can help you protect your interests and responsibilities. In your Stock Purchase Agreement, you should include details such as: the name of the corporation whose stock is being sold; who is selling the stock; who will be buying the stock; how many shares are being sold, and the par value of each share; when and where the closing occur; and how much "earnest money" the purchaser will deposit before the closing date.
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