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 ?
While same-store sales was essentially in-line with the "recently lowered bar," Binetti said he was "surprised" at the size of its reinvestment plans for 2018, which imply an about $850M EBIT midpoint, but believes Ulta has an opportunity to redeploy tax savings beyond proven initiatives, which should help to speed up comps as they ease through the year.
Dividend Reinvestment Plans (DRIPs) are programs that allow individuals to purchase stock directly from the company.
Dividend reinvestment plans. A plan sponsor that does not use the dividends on ESOP shares to repay an exempt loan alternatively can obtain a deduction by distributing the dividends to participants in cash within 90 days of the close of the plan year.
In addition, companies commonly provide dividend reinvestment plans for their shareholders.
Dividend reinvestment plans (DRPs) provide an investor with the opportunity to reinvest dividends in shares of the company's common stock.
Growth policies, whether from within or by acquisition, should be spelled out and reinvestment plans outlined.
One of those accounts is with EquiServe (www.equi serve, corn), a company that allows investors to make direct investments in publicly traded companies through Dividend Reinvestment Plans (DRIPs).
We consider dividend reinvestment plans (DRPs) in inefficient markets.
Many corporations raise capital by adopting dividend reinvestment plans (DRIPs), which permit shareholders to reinvest dividends at a discount.
She invests through dividend reinvestment plans (DRIPs).
* Offerings pursuant to dividend or interest reinvestment plans.
Another way to purchase stocks directly from a company is through direct stock plans (DSPs) and dividend reinvestment plans (DRIPs), accounts that allow you to buy shares directly from a company's headquarters.