Generally speaking, there are two options for buying a business: a share purchase or an asset purchase. In a share purchase, the purchaser buys the shares of the company that operates the business and that owns the assets of the business. … In an asset purchase, the purchaser buys specific business assets.

What does a share purchase mean?

The process of buying and selling STOCKS and SHARES on the STOCK MARKET. The market maker will quote two prices to the stockbroker or bank, a lower ‘bid’ price at which the market maker is prepared to buy shares, and a higher ‘offer’ price at which he is prepared to sell the shares.

Is a share purchase plan good?

If you do have confidence in the company and are looking to invest more, share purchase plans provide a great opportunity to do so, Ashley Bishop from Verse Wealth tells Money. Seems like a good deal, and in many cases it is, but there are still some things investors should be mindful of.

What is a share purchase agreement?

A share purchase agreement (“SPA”) is typically entered into by and between a buyer and seller(s) of a target company’s shares whereby the seller(s) agrees to sell a specific number of shares to the buyer for a specified price.