Finally, the transfer of ownership of the shares to the buyer can be done either manually through the paper-based Talisman system (including the issuance of new share certificates) or electronically through the Crest system. See COMPANY REGISTRAR, SHARE REGISTER. SPAs are used by large listed companies in their supply chains. A SPA can be used when a large number of materials are purchased by a supplier or in the case of a large individual purchase. For example, 1,000 widgets, all delivered at the same time. Institutional investors such as pension funds follow a largely similar procedure for stock transactions, although they often bypass brokers and sometimes market makers and buy and sell large amounts of securities directly with each other. See SPECULATION. Share purchase agreements can be used in all cases where one entity or natural sells shares to another. Agreements are most often used when the relevant shares are transferred to companies in two different countries under two different legal systems or when the shares are sold outside a standard trading venue or outside an exchange. SpAs also contains detailed information about the buyer and seller. The agreement records all deposits made prior to negotiations and notes a part of the agreement that has already been complied with. The agreement also specifies when the final sale will take place.

Secondly, the broker or bank turns to a MARKET MAKER to buy or sell the shares as ordered. The market maker holds shares in a limited number of companies determined by the market maker`s specialty. The market maker quotes two prices to the broker or bank: a lower „silver price“, at which the market maker is willing to buy shares, and a higher „offer price“, at which he is willing to sell the shares. The difference or spread between these prices provides the market maker`s profit margin. By mentioning two prices, the market maker does not know if the stock broker intends to buy or sell shares, and the broker will only reveal whether he wants to buy or sell and will only conclude the transaction if he finds the market maker`s prices competitive with those of other market makers. At this point, a „good deal“ is concluded and ownership of the shares passes to the buyer. A share purchase agreement is a company contract.. . . .