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TOPIC: Sweet Equity
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Sweet Equity 3 Years, 5 Months ago Karma: 0  
Sweet equity means the extra percentage of a company's equity which is allocated to the managers over and above the shareholding their own relatively modest financial investment would quality them for.
Extra shares are seen as an additional motivation and reflect the fact that it is the managers' hard work which will ultimately make the venture succeed.
Sometimes also referred to as "sweat" equity to reflect the hard work by the managers.
Consult.Fin (User)
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Last Edit: 2008/12/12 00:56 By Consult.Fin.
 
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