What context can I use each word in?
Learn when and how to use these words with these examples!
reinvestment
Example
The company decided to use its profits for reinvestment in new technology. [reinvestment: noun]
Example
Reinvestment of dividends can lead to higher long-term returns. [reinvestment: noun]
Example
I plan to reinvest my earnings in the stock market to maximize my returns. [reinvest: verb]
investment
Example
I made an investment in a startup company and hope to see a return on my investment. [investment: noun]
Example
Investment in education can lead to greater career opportunities. [investment: noun]
Example
She decided to invest in real estate as a way to diversify her portfolio. [invest: verb]
Good things to know
Which word is more common?
Investment is a more common term than reinvestment in everyday language, as it is a broader concept that encompasses a wider range of assets and strategies. However, reinvestment is an important concept in finance and business, particularly for those looking to maximize returns on existing investments.
Whatโs the difference in the tone of formality between reinvestment and investment?
Both investment and reinvestment can be used in formal and informal contexts, although they may be more commonly used in formal settings such as business meetings or financial planning sessions.
