Startup Terms Glossary
What is a Purchase Agreement?
Any time a stock or bond is traded, there is a contractual agreement completed between a startup and an investor. A purchase agreement is the formal document that defines the term of the contract in writing. Purchase agreements help protect buyers and sellers of securities since it ensures both parties understand their rights and responsibilities.
Purchase Agreement Examples
Key concepts of purchase agreement include:
- Point 1. Required by federal law
- Point 2. Defines price per share, purchase price, and amount of securities bought and sold under the agreement
- Contains conditions of the sale
Here’s another web page about purchase agreements.
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