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sweat equity

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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
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2009.
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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).

The American Heritage® Dictionary of the English Language, Fourth Edition
Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Financial Dictionary

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

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
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