Thursday 1 May 2014

Sweat Equity

1. Sweat Equity Shares are equity shares issued by a company to its employees or directors at a discount, or as a consideration for providing know-how or a similar value to the company. This is often given as an additional motivation for continuing hard work for the firm's success.

2. Sweat Equity can also be considered as the 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.

3. It can also be considered as the 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.

1 comment: