Answer / amit kapoor

The phrase `sweat equity' refers to equity shares given to
the company's employees on favourable terms, in recognition
of their work. Sweat equity usually takes the form of
giving options to employees to buy shares of the company,
so they become part owners and participate in the profits,
apart from earning salary.

Answer / anandsurya

A sweat equity share is an equity share issued by the at a
discounted price or for a non cash consideration. This may
be issued to shareholders technology partners.

Answer / rajesh

swet eqity shares are the shares issued to the employees at
a discount rate to become the part of the owners.

Answer / daalmans llb

Sweet equity is mostly found with Private equity managers and is always involved with normal and preference shares or loans which have a fixed interest. This way the managers get rewarded for making a higher Return on Investment. After the fixed percentages are paid all the extra ROI comes to the normal shares. An example can show how it works:

PE managers have all the normal shares, nominal value 20.000
PE firm places preference shares with ROI of 6% for a value of 0.98 million. (normally this is much higher)

If the ROI on all funds is 10% the total ROI will be 100.000. The PE house gets 0.06 x 980.000 = approx 60.000.
The PE manager will get the other 40.000. With an initial investment of 20.000 het gets a ROI of 200%. Thats sweet (equity)

In Holland there is special tax legislation on this topic. I'm writing my LLM thesis on the subject.

Answer / rupesh dewangan

A sweet shares is a type of incentive which is given to the
company's employee for a non - cash consideration ,or in
some companies according to their norms,it is given at a
discount price excluding tax to become a partial owner of a
company.

Answer / alinihas.v

sweat equity shares are equity shares issued by the company to employees or directors at a discount or for consideration other than cash for providing know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called.

Answer / kritika johri

sweat equity shares issued by the company to employees at a
discount or for consideration other than cash for providing
know-how or making available rights in the nature of
intellectual property rights.

Answer / kishore

The term is sometimes used to describe the efforts put into
a start-up company by the founders in exchange for
ownership shares of the company.

Answer / rishi walia

sweat equity share is an equity share which is given by
companies employees or existing share holders at a
discounted rate.

Answer / pradeep kulkarni

EQUITY THAT IS CREATED BY A OWNER IN A COMPANY AS A DIRECT
RESULT OF HARDWORK

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