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plow back |
Also found in: Dictionary/thesaurus, Idioms, Encyclopedia, Wikipedia, Hutchinson | 0.07 sec. |
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Plow back To reinvest earnings in a business rather than pay out them out as dividends. Common practice in high-growth companies.
plow back To reinvest a company's earnings into its operations. A high growth company often plows back the majority of its earnings rather than pays out dividends in order to maintain its high growth rate. On the other hand, established companies tend to plow back very little, unless they are attempting to corner or create a new market. The plowback ratio tells investors the rate at which companies do this. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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