reinvestment Definition
- 1the act of putting money back into a business or organization in order to improve it
- 2the act of investing money that has been earned from previous investments
Using reinvestment: Examples
Take a moment to familiarize yourself with how "reinvestment" can be used in various situations through the following examples!
Example
The company plans to use the profits for reinvestment in new projects.
Example
Reinvestment of dividends is a common strategy for long-term investors.
Example
The government encourages reinvestment in renewable energy sources.
reinvestment Synonyms and Antonyms
Synonyms for reinvestment
- investment
- reinvesting
- plowing back
Phrases with reinvestment
investment made by foreign companies or individuals in a country's businesses or industries
Example
Foreign reinvestment can bring in new technologies and create job opportunities.
the risk that an investor will not be able to reinvest cash flows at a rate comparable to their current rate of return
Example
Reinvestment risk is a concern for investors who rely on interest income.
tax-free reinvestment
a program that allows investors to reinvest dividends or capital gains without paying taxes on them
Example
Tax-free reinvestment can help investors maximize their returns.
Summary: reinvestment in Brief
Reinvestment [ˌriːɪnˈvɛstmənt] refers to the act of putting money back into a business or organization to improve it or investing money earned from previous investments. Examples include using profits for new projects, reinvesting dividends, and investing in renewable energy sources. Phrases like 'foreign reinvestment' and 'tax-free reinvestment' denote specific contexts. The term is formal and synonymous with 'investment.'
