{
  "title": "What is a stock sale? Definition, formula and example",
  "url": "https://acquisitions.com/blog/what-is-a-stock-sale/",
  "author": "Moran Pober",
  "publisher": "Acquisitions.com",
  "published": "2026-10-29",
  "updated": "2026-10-29",
  "section": "Glossary",
  "keyword": "Stock sale",
  "short_answer": "A stock sale is a deal in which the buyer purchases the owner's shares (or LLC units) instead of the company's assets. The company itself does not change. It keeps its contracts, licences, employees, tax history and debts; only the owner changes.",
  "facts": {
    "Agreed enterprise value": "$3,000,000",
    "Less: bank loan left in the company": "−$400,000",
    "Plus: cash left in the company": "+$150,000",
    "Less: working capital below the peg": "−$50,000",
    "Price paid for the shares": "$2,700,000",
    "Seller's tax basis in the shares": "$200,000",
    "Seller's gain before tax": "$2,500,000"
  },
  "sources": [
    "https://www.irs.gov/taxtopics/tc409",
    "https://www.irs.gov/forms-pubs/about-form-8883"
  ],
  "license": "Facts may be quoted with attribution to Acquisitions.com and a link to the url above."
}