A buy-and-sell agreement allows shareholders to sell their shares to people other than fellow shareholders or the corporation.

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A buy-and-sell agreement is a legally binding agreement between shareholders that establishes which events trigger the mandatory sale of shares and who may purchase them. Typically, the agreement specifies that shares may only be sold to other shareholders or the corporation itself. This is often done to protect shareholders from outside parties who may not have the same goals or values as the existing shareholders.

A Buy-And-Sell Agreement Allows Shareholders to Sell Their Shares to People