oboloo Glossary

Share Agreement

oboloo Glossary

Share Agreement

A Share Agreement is a legally binding contract between two or more parties that stipulates the terms and conditions involved in an agreement to purchase shares. This type of agreement is typically used when companies are forming and issuing stock, or when an investor wishes to purchase stock from the company. The agreement outlines the rights of each party in the transaction, including: who will receive the profits generated from the shares, how the shares will be valued, how profits will be divided amongst the shareholders, and other information about the ownership and sale of the shares. By outlining these details, a Share Agreement helps ensure that all parties involved understand their roles and obligations within the agreement.