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
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reinvestment UK US (also re-investment) /ˌriːɪnˈvestmənt/ noun [U] STOCK MARKET, FINANCE
► the activity of putting money that you receive from an investment back into that investment, or into another investment: »
The figure for total return is based on reinvestment of all dividends.
»a dividend reinvestment plan
»a reinvestment option/rate
Financial and business terms. 2012.