Sweat Equity

Sweat equity - Basically sweat equity is the equity, which is the value that something is worth, by doing hard work. If you labored for hours on your car and sweated (literally or figuratively speaking) to repair it or improve it in someway and its value went up as a result of your labor that would be sweat equity. When we are talking specifically about corporations and investment policies, sweat equity is considered to be the hard work and determination that company executives put into the company to improve its value and thus the values of its shares upon the open market. In a company, sweat equity never ends at the end of the growing period it must continue through the existence of the company.