Another important benefit of a stock purchase agreement is that it provides specific information on the transfer of stock. This means all of the warranties from the seller are spelled out. OTC products are usually for longer maturities, and are usually a form of options product. For example, the right but not the obligation to cash delivery based on the difference between the designated strike price, and the value of the designated index at the expiration date. These are traded in the wholesale market, but are often used as the basis of guaranteed equity products, which offer retail buyers a participation if the equity index rises over time, but which provides guaranteed return of capital if the index falls. Sometimes these products can take the form of exotic options (for example Asian options or Quanto options). The stock of a corporation is partitioned into shares, the total of which are stated at the time of business formation. Additional shares may subsequently be authorized by the existing shareholders and issued by the company. A lease purchase agreement is a real estate purchase contract form in which rent is essentially an installment payment toward the purchase price. A lease to purchase agreement is a form of owner financing that is often used when the buyer doesn't qualify for a commercial loan or the property has been on the market for an extended period. AXA ranked number one global insurance brand for the 8th consecutive year and is the sponsor of this article. All Guarantees are based solely on the issuing insurance company, either AXA Equitable Life Insurance Company or MONY Life Insurance Company of America.

A stock purchase agreement is the agreement that two parties sign when shares of a company are being bought or sold. These agreements are often used by small corporations who sell stock. In states that impose sales or transfer taxes on the sale of assets, a stock transaction can avoid some or all of these taxes that apply in the event of an asset transaction. As you can see, there are several key advantages and disadvantages to asset and stock purchases. While this may all seem a little complicated, it doesn't need to be -and seeking legal counsel could really pay off. Talk to a small business lawyer to help you further understand the differences and answer any important questions you may have.