Original Equity
Barron's Business Dictionary:
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Original Equity
The amount of cash initially invested by the underlying owner. Distinguished from sweat equity , capital calls.
| Original Equipment Manufacturer (OEM), Original Cost, Orientation | |
| Original Issue Discount (OID), Original Order, Originalentry |
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Original Equity
Barron's Real Estate Dictionary:
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Original Equity
The amount of cash initially invested by the underlying real estate owner. Distinguished from sweat equity, capital calls.
Example: Oliver paid $25,000 cash as original equity and borrowed $75,000 to purchase a $100,000 vacation home. His laborious efforts to remodel added $20,000 through sweat equity, and inflation raised the equity value by another $10,000.
Example: Oliver paid $25,000 cash as original equity and borrowed $75,000 to purchase a $100,000 vacation home. His laborious efforts to remodel added $20,000 through sweat equity, and inflation raised the equity value by another $10,000.
| Original Cost, Oriented Strand Board (OSB) | |
| Original Face Value, Originate |
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Barron's Business Dictionary
Dictionary of Business Terms. Copyright © 2007 by Barron's Educational Series, Inc. All rights reserved.
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