reinvestment plan

(redirected from Re-Investment Plans)

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.

reinvestment plan

References in periodicals archive ?
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.
This dinner recognises the continuous contributions and investment efforts of Nam Tai, Deswell, and Bonso in helping develop the high technology industry in Shenzhen in the past years, and shows support for Nam Tai's recently announced expansion and re-investment plans.
More Small Business Owners See Economic Conditions for Their Businesses Improving; Re-investment Plans Increase
One of the best ways to do this is with dividend re-investment plans, or DRIPs (where a company will reinvest your dividends into new shares).