A stock subscription agreement is a legal document in the form of a contract. It is also known as a “share purchase agreement”.
This is between two (2) parties for the transfer of ownership or sale of stock in a company. Oftentimes, companies issue shares to sell to a buyer and the agreement provides details that include the number of shares and the price for each unit of stock sold.
In a previous article about How to Issue stock, a “share” refers to a single unit of company stock, which represents the money invested by the “shareholders” or the people who invested their money in a business with the hope of earning profits by receiving their “share” of dividends.
How to draft a stock subscription agreement? Here are the steps: