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In California, a corporation must authorize at least one share but may authorize any number. You, as the founder, can be the sole stockholder and own all authorized shares yourself, or you can issue shares to others who you desire to co-own the corporation.
4 By the great weight of authority, a corporation has the right to buy its own stock. 6 Fletcher, Cyclopedia Corporations, perm. ed., Sec. 2848 (1931).
A share purchase agreement is a formal contract or an agreement that sets out the terms and conditions relating to the sale and purchase of shares in a company. The share purchase agreement should very clearly set out what is being sold, to whom and for how much, as well as any other obligations and liabilities.
Most of the time, your exercised shares get paid out in cash or converted into common shares of the acquiring company. You may also get the chance to exercise shares during or shortly after the deal closes.
When A Company Is Bought, What Happens to the Stock? The stock of the company that has been bought tends to rise since the acquiring company has likely paid a premium on its shares as a way to entice stockholders. However, there are some instances when the newly acquired company sees its shares fall on the merger news.
If at least a portion of your stock options are vested, you have the right to buy shares in your company. As such, the acquiring company (in most cases) will need to compensate you for this right/value (otherwise you would exercise the right and purchase shares?and then they would need to buyout your shares).