# What is Stock Purchase Agreement? Definition & Technical Mechanics

> **Source:** [SPIDITS AI Startup & Venture Intelligence Glossary](https://spidits.com/startup-glossary)  
> **Category:** Legal  
> **Canonical Citation:** [https://spidits.com/startup-glossary/stock-purchase-agreement](https://spidits.com/startup-glossary/stock-purchase-agreement)

## Definition
A Stock Purchase Agreement (SPA) is the definitive contract governing the purchase and sale of startup stock by investors, containing representations and warranties.

## Architectural Mechanics & Deep Dive
The Stock Purchase Agreement (SPA) is the binding contract of a priced funding round. It outlines transaction terms, pricing, and company disclosures, finalizing the equity purchase.

## Industry Applications & Real-World Use Cases
Fundraising round closures and equity transactions

## Frequently Asked Questions

### What are reps and warranties in an SPA?
Legal statements by the startup confirming the accuracy of its financial records, tax filings, and intellectual property ownership.

### Is an SPA binding?
Yes. Once executed by both parties, the SPA is the binding contract that executes the stock sale.

## Related Terminology
- [term-sheet](https://spidits.com/startup-glossary/term-sheet)
- [due-diligence](https://spidits.com/startup-glossary/due-diligence)
- [priced-round](https://spidits.com/startup-glossary/priced-round)

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*From the SPIDITS AI Knowledge Base (311+ terms indexed). Explore full technical definitions: [https://spidits.com/startup-glossary](https://spidits.com/startup-glossary)*