Stock Purchase Agreement

A Stock Purchase Agreement is a special document that people use when they want to buy or sell pieces of a big company. Imagine the company is like a big pie, and each piece of stock is like a slice of that pie. The person who owns the stock gets a little slice of the company and becomes a part-owner.

The importance:

Now, this agreement is important, whether you’re the one buying the stock or the one selling it. It’s like a set of rules that everyone agrees to follow. It helps you know exactly what you need to do and what you’re responsible for. Think of it as a safety net that protects you from any problems that might come up.

To make things easier, it is wise that you include, some important information such as:

1. The name of the big company whose stock is being sold.

2. Who is the person or entity selling the stock? It could be the company itself or one of the people who already owns some stock.

3. Who is going to buy the stock? That is the new owner-to-be!

4. How many pieces of stock are being sold? Is it a few slices or a whole bunch?

5. Each piece of stock has a value, and that’s called the “par value.” You need to write down how much each slice is worth.

6. It’s like setting a date and place for a special meeting! You need to say when and where the deal will happen. This is when the old owner hands over the stock to the new owner.

7. Before the deal is done, the buyer often gives some money as an agreement to buy the stock. It’s like saying, “Hey, I’m serious about this! Here’s some money to show you I want to buy it.”


Having all this written down is very helpful because it makes sure everyone knows what’s going on. It’s like having a special map to follow during this important buying and selling process. And most importantly, it keeps things fair and square for everyone involved!

So, whenever you’re dealing with buying or selling stock in a big company, remember to have this special Stock Purchase Agreement ready. It’s like having a guidebook that helps you through this exciting and important journey! At Dike Law Group we have experienced attorney’s that can draft these types of agreements. Schedule a meeting at

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