“Buyout” is the purchase or Acquisition of a controlling interest in a company by buying a majority of the shares of its present Stockholders.

A Buyout also can refer to a contractual provision in a Stock Restriction Agreement, which allows a company to buy back the Unvested shares of a Stockholder due to a specific event such as the termination of the Stockholder’s business relationship with the company (e.g., as an employee or consultant).