{"ok":true,"canonical_url":"https://dealroom.so/glossary/stock-purchase","api_url":"https://dealroom.so/api/public/glossary/stock-purchase","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"stock-purchase","term":"Stock purchase","aka":"equity purchase","group":"Doing the deal","definition":"Buying the company itself, ownership papers and all. Required for partial buyouts.","what_it_means":"A stock purchase transfers the shares of the existing legal entity rather than its individual assets. You inherit everything — assets, liabilities, contracts, and any unknown surprises buried in the company's history. Representations and warranties in the purchase agreement protect you from known issues, but stock purchases generally carry more risk than asset deals. The SBA allows stock purchases but requires additional documentation for the change-of-ownership file.","url":"https://dealroom.so/glossary/stock-purchase","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"change-of-ownership","term":"Change of ownership","url":"https://dealroom.so/glossary/change-of-ownership"},{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"},{"slug":"escrow-holdback","term":"Escrow / holdback","url":"https://dealroom.so/glossary/escrow-holdback"}],"related_questions":[{"question":"What is the difference between an asset and stock purchase in a buyout?","url":"https://dealroom.so/sba-7a/questions/what-is-the-difference-between-an-asset-and-stock-purchase-in-a-buyout"},{"question":"What if the value of my stock portfolio (for equity injection) drops before closing?","url":"https://dealroom.so/sba-7a/questions/what-if-the-value-of-my-stock-portfolio-for-equity-injection-drops-before-closing"},{"question":"Can an SBA 7(a) loan be used to buy stock or passive investments?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-buy-stock-or-passive-investments"},{"question":"What documentation is required to verify equity injection funds sourced from a personal stock sale?","url":"https://dealroom.so/for-lenders/questions/what-documentation-is-required-to-verify-equity-injection-funds-sourced-from-a-personal-st"},{"question":"Does an unfunded stock option agreement trigger affiliation for SBA 7(a) size standard calculations?","url":"https://dealroom.so/for-lenders/questions/does-an-unfunded-stock-option-agreement-trigger-affiliation-for-sba-7-a-size-standard-calc"},{"question":"When does common ownership by an Employee Stock Ownership Plan (ESOP) trigger affiliation for size determination?","url":"https://dealroom.so/for-lenders/questions/when-does-common-ownership-by-an-employee-stock-ownership-plan-esop-trigger-affiliation-fo"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Stock purchase","url":"https://dealroom.so/glossary/stock-purchase","source_type":"DealRoom Data"}}