Sale of Assets or Sale of Stock?
Answer:
In the sale of assets, all the tangible and intangible assets to be transferred to the buyer are normally separately identified. The buyer's assumption of liabilities, if any, must be carefully provided for.
The sale of assets is in contrast to the sale of stock, in which all assets and liabilities of the entity represented by the stock are transferred as part of the sale of stock. The entity remains in place, and so do the assets and liabilities. Only the ownership of the stock itself is changed in such a sale.
The sale of assets is in contrast to the sale of stock, in which all assets and liabilities of the entity represented by the stock are transferred as part of the sale of stock. The entity remains in place, and so do the assets and liabilities. Only the ownership of the stock itself is changed in such a sale.
