reinvestment

Definition

Using the dividends, interest, or profits from an investment to buy more of that investment, rather than receiving a cash payout. Reinvestment can sometimes delay or reduce capital gains taxes.

Use reinvestment in a sentence

You may find that the best way to use the money you have made is to have it be a reinvestment into something more.

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While still working I have chosen the reinvestment of dividends paid on the majority of stocks in my investment portfolio.

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The financial advisor explained to his clients the effect of compound interest and why the reinvestment of dividends was a better option for their future.

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accumulation plan Community Reinvestment Act of 1977