STOCK SALE Definition

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STOCK SALE is where the equity price is assumed to include the operating assets and operating liabilities of the sellers business and not include the long term liabilities assumed. The long term liabilities assumed are shown as a separate line item and when added to the equity price results in the deal price. In those transactions indicated as an asset sale the equity price is assumed to include the operating assets.

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FACTORING is the practice of buying debt at a discount, e.g., if somebody owes you $10,000 payable within a year, a factoring lender may pay you $9,000 for the debt. You receive $9,000 cash quickly, but at the cost of the $1,000 discount.

SAME STORE SALES is used when analyzing the retail industry. It compares sales in stores which have been open for a year or more.

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