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Sale of securities: When a company sells another company's securities, that sale is considered an investing activity. When a company sells its own stock, the sale is considered a financing activity. In other words, a company purchases shares of its own stock, and those shares become treasury shares.
Also question is, how does a stock sale work?
Broadly speaking: In a stock sale, the seller gives the buyer shares. Once the buyer holds all the target shares, it controls the business by virtue of being its new owner. In an asset sale, the seller gives the buyer assets.
Also Know, when you buy stock in a company what are you purchasing?
When a company needs to raise money, they often sell shares of their company to others, in exchange for money they can use to run the business. If you are buying shares of a company on the stock market, that means that the company needed, or wanted, a lot of money to run the business.
When the company is bought, it usually has an increase in its share price. An investor can sell shares on the stock exchange for the current market price at any time. The acquiring company will usually offer a premium price more than the current stock price to entice the target company to sell.