Reinvestment Stock

(redirected from Re-Investment Stock)

Reinvestment Stock

Stock that an investor purchases with dividends on that same stock. For example, if one receives $500 in dividends from his stock in Johnson & Johnson, one may purchase $500 worth of reinvestment stock in Johnson & Johnson. While this involves assuming more risk in the stock, it carries the possibility of higher returns. See also: Automatic reinvestment plan.