A stock purchase agreement is a contract in which the owner of shares or stock in a company (a person, entity, or the company itself) sells some or all of the shares to another person or entity. Stock purchase agreements are often used when the majority ownership interest in a company is acquired by another person or entity. For more information on the transfer of ownership of companies, see the Common Legal Topic on mergers and acquisitions.

In Montana, a stock purchase agreement is a legal document that outlines the terms and conditions under which shares of a company are sold and purchased. This agreement typically includes details such as the number of shares being sold, the price per share, representations and warranties of the parties, and any conditions precedent to the closing of the transaction. The agreement is crucial when there is a transfer of majority ownership, as it ensures that both the seller's and buyer's interests are protected and that the transaction complies with applicable securities laws. Montana state statutes, along with federal law, govern the sale of securities and include provisions to prevent fraud and ensure fair dealing in the transaction. It is important for parties involved in such transactions to consult with an attorney to ensure that the stock purchase agreement adheres to all legal requirements and accurately reflects the intentions of the parties. For more complex transactions, such as mergers and acquisitions, additional regulations may apply, and these are often governed by both state and federal law.