Reinvestment


Reinvestment
Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash.

1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares.

2. In terms of mutual funds, it is the reinvestment of distributions and dividends to purchase additional units of that fund.

3. In terms of tax gain/loss harvesting, it is the realization of losses to offset a capital gains liability.

This is definitely a great way to significantly increase the value of a stock or mutual fund. In the case of stocks, investors can use dividends to buy additional shares instead of receiving payments in cash.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Reinvestment — Re in*vest ment ( v?st ment), n. The act of investing anew; a second or repeated investment. [1913 Webster] …   The Collaborative International Dictionary of English

  • reinvestment — Use of investment income to buy additional securities. Many mutual fund companies and investment services offer the automatic reinvestment of dividends and capital gains distributions as an option investors. Bloomberg Financial Dictionary * * *… …   Financial and business terms

  • reinvestment — reinvesticija statusas Aprobuotas sritis ūkio plėtra ir ilgalaikė strategija apibrėžtis Iš investicijų gauto pelno (pajamų) investicija į tą pelną (pajamas) gavusį ūkio subjektą. atitikmenys: angl. reinvestment vok. Reinvestierung rus.… …   Lithuanian dictionary (lietuvių žodynas)

  • reinvestment — /ˌri:ɪn vestmənt/ noun 1. the act of investing money again in the same securities 2. the act of investing a company’s earnings in its own business by using them to create new products for sale ▪▪▪ ‘…many large US corporations offer shareholders… …   Dictionary of banking and finance

  • reinvestment — noun Date: circa 1611 1. the action of reinvesting ; the state of being reinvested 2. a second or repeated investment …   New Collegiate Dictionary

  • reinvestment — n. * * * …   Universalium

  • reinvestment — noun a) The condition of being reinvested b) A second or subsequent investment in the same thing …   Wiktionary

  • reinvestment — re·in·vest·ment || ‚rɪːɪn vestmÉ™nt n. restoration a title or degree; act of granting power again; act of redepositing money for future profit …   English contemporary dictionary

  • reinvestment — re·investment …   English syllables

  • reinvestment — re in•vest′ment n …   From formal English to slang


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