reinvestment

noun

Meaning

The act of using profits or earnings from an investment to purchase additional assets or fund further development rather than withdrawing them as income.

Examples

  • The company's strategy relies on the constant reinvestment of dividends into research and development.
  • Successful startups often prioritize reinvestment over paying out immediate cash to shareholders.

Synonyms: plowing back, capitalization, compounding, recapitalization