Bill of Sale for Stock is a similar instrument like SPA or agreement of the stock purchase. This document records a sale and title transfer of stocks or company shares. The seller of the company stocks undertakes that these stocks are free from any lien, encumbrance, or adverse claims. This legal instrument is binding on both parties upon signing and executing it. Therefore, both seller and the buyer must sign it to complete the transaction. However, you must understand that the scope of this document is distinct from the APA or agreement to purchase assets. Interpretation of APA and Bill of Sale for Stock is entirely different. Duly prepared and signed bill of sale records the mutual stock transfer between the seller and the buyer.
A typical Bill of Sale for Stock has spaces for inputs like
- Amount of stock purchase
- Information about the seller
- Information about the buyer
- Description of the stock or property
- Date of execution of the bill of sale
- Signatures of all involved parties
Notarization of the Bill of Sale for Stock is not necessary. However, all sellers and buyers must duly sign it in acceptance to a physical transaction of sale and transfer of stock, especially when more than one seller or buyers engage in the sale. This document offers evidence of the clear title and marketable price of the stock for the buyer. The buyer can use this document as receipt for payment as well as proof of ownership of the stock.
How to Write a Bill of Sale for Stock
- Enter purchase price in US dollar.
- Enter seller’s legal name.
- Continue by entering seller’s detailed address including street address. Please avoid PO Box addresses.
- Enter buyer’s legal name.
- Enter buyer’s detailed address on the next line. Please do not provide a PO Box address.
- Please give accurate description of property or stock. You may specify serial numbers and name of issuing authority.
- Enter date of execution of Bill of Sale for Stock in required format.
- The seller must sign on the next line.
- The buyer must to complete preparing Bill of Sale for Stock correctly.
Bill of Sale for Stock is necessary to record a physical transaction of sale and lien-free transfer of stock from the seller to the buyer under monetary considerations. Please furnish all particulars accurately and descriptively. In addition, the seller and buyer must sign this document during its execution. Notarization of bill of sale is not necessary unless any of the parties requires it. The seller undertakes the responsibility of selling stocks without encumbrance, lien, or any adverse claims. Please understand that this Bill of Sale for Stock is similar to agreement for stock purchase and different from agreement to purchase assets.
