reinvestment privilege

Reinvestment privilege

A shareholder's right to reinvest dividends and buy more shares in the corporation or mutual fund.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Reinvestment Privilege

The right of shareholders to use dividends to buy more shares of a publicly-traded company or mutual fund. Many publicly-traded companies and most mutual funds carry a reinvestment privilege as a perk for investors. Shareholders who avail themselves of the reinvestment privilege do not pay any additional fees on the extra shares they buy.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

reinvestment privilege

The prerogative of a mutual fund shareholder to have dividends used to purchase additional shares in the fund. Most mutual funds give their shareholders reinvestment privileges and most do not charge fees for the purchase of the new shares.
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.