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sweat equity - 3 dictionary results

sweat equity

–noun
unreimbursed labor that results in the increased value of property or that is invested to establish or expand an enterprise.

Origin:
1965–70
sweat equity  
n.  
  1. Work, especially manual labor, performed in return for a share in ownership, as of a home.
  2. Sustained effort; hard work: "Coming up with compelling plots is a little bit inspiration and a lot of sweat equity" (David Baldacci).

Sweat Equity

The equity that is created in a company or some other asset as a direct result of hard work by the owner(s).

Investopedia Commentary

For example, rebuilding the engine on your 1968 Mustang to increase its value.

See also: Asset, Equity

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