Reinvestment

Reinvestment refers to the practice of using profits or returns from an investment to acquire additional investments rather than cashing out. This strategy is often employed to compound growth, maximize returns over time, and enhance financial portfolios. It reflects a commitment to long-term financial planning and sustainability.

Reinvestment meaning with examples

After analyzing the market trends, the company decided on reinvestment of its profits into technology upgrades, aiming to enhance operational efficiency and stay competitive in the industry.
Investors often prefer reinvestment of dividends as it allows them to accumulate more shares over time, leading to potentially greater returns in the future due to compounding effects.
In a booming economy, many startups focus on reinvestment of their earnings back into research and development, ensuring continuous innovation and improvement of their products.
Personal finance advisors frequently recommend reinvestment of tax refunds into retirement accounts, reinforcing the importance of planning for long-term financial security and wealth accumulation.
Reinvestment in community projects by local businesses can significantly boost economic growth, providing new employment opportunities and enhancing infrastructure, benefiting the area as a whole.

Reinvestment Synonyms

enhancement expansion integration reallocation reapplication recapitalization recirculation recommitment redistribution reemployment refunding regrowth reinstitution reinvesting renewal replenishment repurchase restoration resurgence reutilization

Reinvestment Antonyms

abandonment consumption deconstruction depletion destruction discharge disinvestment dissipation dissociation dissolution divestment expenditure redundancy removal sale severance spending squandering surrender withdrawal