Carrot Equity

Carrot Equity

Equity which allows for the opportunity to purchase more equity if the company reaches certain financial goals.

Notes:

This term is British slang. It likely originated from the practice or urging an animal onwards by attaching a carrot on a stick to its head.

See also: Equity

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Carrot equity

British slang for an equity investment with the added benefit of an opportunity to purchase more equity if the company reaches certain financial goals.