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sweat equity

Definition 1

Increased worth of a business (over and above the money invested) created by the unpaid mental and/or physical hard work of the founder/owner.

Definition 2

Increased value of a property (over and above its purchase price) created by the hard work of the owner/occupant in enhancing its amenities and/or looks.

Definition 3

Extra percentage of a firm's common stock (ordinary shares) allocated to the senior executives (over and above their current shareholdings) as an additional motivation for continuing hard work for the firm's success.

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