automatic reinvestment

Automatic reinvestment

Automatic Dividend Reinvestment

A practice or agreement in which dividends on a security are used to buy more of the same security, rather than disbursed to the investor in cash. Automatic dividend reinvestment is relatively common in mutual funds; investors agree to use dividends and other capital gains to reinvest in more shares of the mutual fund. While this involves assuming more risk in the mutual fund, it carries the possibility of higher returns.

automatic reinvestment

The automatic purchase of additional shares of an open-end investment company using any dividends and capital gains distributions that are made by the firm. This option (in lieu of actually receiving payments) permits a mutual fund shareholder to increase his or her holdings in the fund. Taxes must be paid on the amount reinvested even though no funds are received directly. See also dividend reinvestment plan.
References in periodicals archive ?
Investors would also have the option to reinvest the dividends (net-off tax) in MCB-PFPF (as there will be no automatic reinvestment option in MCB-PFPF) or they can utilize the dividend stream to meet their monthly expenses.
This dividend will not be eligible for automatic reinvestment under the company's Dividend Reinvestment and Stock Purchase Plan.
The Director General informed that at present the following National Savings Schemes (NSS) are in operation; Defence Savings Certificate scheme which is a10 years' maturity scheme with built in feature of automatic reinvestment after the maturity.
If fundamentals deteriorate or if dividends fall below expectation, automatic reinvestment in the same stock or continuing to hold the same share may hurt returns, says Khokhar.
the Company") makes a block disclosure of purchases made by its directors under its employee stock purchase plan (ESPP) or through the automatic reinvestment of dividends received on shares held in the ESPP accounts.
And while most traditional funds permit automatic reinvestment of dividends and capital gains, ETFs generally do not.
Effective after the end of the business day, Friday, December 30, 2005: -- The Calamos Market Neutral Income Fund opens to new money, including new accounts, exchanges, and automatic reinvestment.
To avoid being blindsided by the accidental application of the wash sale rule, CPAs should advise clients to find out if a reinvestment is scheduled to occur during the waiting period, and if so, opt out of the automatic reinvestment plan or change the scheduled disposal date.
Since the Williamses have to take most of their money and put it back into their business for now, they should start with at least $50 a month, taking advantage of an automatic reinvestment plan.
Apply this same rule if you own stocks with automatic reinvestment of dividends.
Dividend Reinvestment and Stock Purchase Plan (the "Plan" or "DRSPP"): This special dividend will not be available to participants for automatic reinvestment through the Plan.
24 January 2006 Director/PDMR Ian Griffiths, automatic reinvestment of

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