When a person goes to buy a business or to set a business, there are two basic types of transactions that can occur. The first is a sale of stock and the second is the sale of assets. A buyer generally wants to buy assets out of a corporation to avoid legacy issues in the old corporation. This is especially the case when the company does or sells high-risk things. When selling a company, it is wise to sell the stock in the company to avoid having to personally deal with these issues. However, the seller does typically have to give warranties as a part of the sale. Sometimes, a person can be locked into buying stock in a company because of licensing requirements or contracts. The general preferences are: if one is buying a company, they want to buy assets, and if one is selling the company, they should sell the companies stock.
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