reinvestment plan

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Reinvestment Plan

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. A reinvestment plan 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.
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reinvestment plan

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
2019 is a transformational year for Jadestone and our forecast remains intact for organic cash flow to meet all ongoing re-investment plans, as well as generating distributable earnings for shareholders in the future.'
In the US, Dividend Re-Investment Plans (DRIP) automatically converts dividends into company's stocks.
He made it clear Severn Link was "working flat out" on re-investment plans to attract funding for the building of landing facilities at Swansea.