When the parties to the sale of a business agree to conduct the transaction as a stock purchase, the seller transfers all of the business’ shares of stock to the buyer.  The business never ceases to operate, and the buyer essentially assumes control of the business once the transaction closes.  The seller relinquishes his or her control and interest in the business, as well as his or her business assets and liabilities.  For this reason, sellers typically prefer a stock purchase to an asset purchase.  Moreover, sellers can sometimes realize tax benefits from structuring a transaction as a stock purchase.   

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