Glossary · Reading the business
Stock(Shares)
In short
Represents ownership shares in a corporation. In an acquisition, a buyer might purchase the seller's stock, acquiring the entire corporate entity, including its assets and liabilities.
What it means in a deal
A stock purchase means you take over the legal entity directly, inheriting all its historical liabilities, known and unknown. This is less common for SBA 7(a) loans, which typically favor asset purchases to mitigate buyer risk.
Related terms
Common questions about Stock
- What is the difference between an asset and stock purchase in a buyout?
- What if the value of my stock portfolio (for equity injection) drops before closing?
- Can an SBA 7(a) loan be used to buy stock or passive investments?
- What documentation is required to verify equity injection funds sourced from a personal stock sale?
- Does an unfunded stock option agreement trigger affiliation for SBA 7(a) size standard calculations?
- When does common ownership by an Employee Stock Ownership Plan (ESOP) trigger affiliation for size determination?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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