Reinvestment Date

Reinvestment date

The date on which an investment's dividend or capital gains income is reinvested, if requested by the shareholder, to purchase additional shares. Also known as the ex-dividend date.

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Reinvestment Date

The date on which a dividend becomes payable to the seller rather than the buyer of a security. That is, if a buyer does not own a stock by the reinvestment date, the next dividend becomes payable to the seller rather than the buyer. Thus, on the reinvestment date, the price of stocks is reduced by the amount of the next dividend. The reinvestment date is also called the ex-dividend date. See also: Do Not Reduce order.