Reinvest: meaning, definitions and examples
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reinvest
[ riːˈɪnˌvɛst ]
financial context
To reinvest means to take profits or earnings from an investment and put them back into the same or another investment, rather than taking the profits as cash. This can help to grow an investment more effectively over time, allowing for the compounding of returns. Reinvesting is commonly done in stock markets, mutual funds, and other investment vehicles. It is often encouraged as a strategy for long-term financial growth.
Synonyms
plow back, reallocate, rechannel
Examples of usage
- I decided to reinvest my dividends to maximize my returns.
- Many investors reinvest their earnings to build their wealth.
- The company chose to reinvest its profits into new projects.
Translations
Translations of the word "reinvest" in other languages:
🇵🇹 reinvestir
🇮🇳 फिर से निवेश करना
🇩🇪 reinvestieren
🇮🇩 menginvestasikan kembali
🇺🇦 реінвестувати
🇵🇱 reinvestować
🇯🇵 再投資する
🇫🇷 réinvestir
🇪🇸 reinvertir
🇹🇷 yeniden yatırmak
🇰🇷 재투자하다
🇸🇦 إعادة الاستثمار
🇨🇿 znovu investovat
🇸🇰 znovu investovať
🇨🇳 再投资
🇸🇮 ponovno investirati
🇮🇸 endurreikna
🇰🇿 қайта инвестициялау
🇬🇪 გახარჯვა ხელახალი ინვესტირება
🇦🇿 yenidən sərmayə qoymaq
🇲🇽 reinvertir
Etymology
The term 'reinvest' is derived from the prefix 're-', which signifies 'again' or 'back,' combined with the verb 'invest,' which comes from the Latin root 'investire.' The Latin 'investire' means 'to clothe, to put on,' and in financial contexts, it evolved to mean 'putting money into something with the expectation of capital gain.' The concept of reinvestment has been a fundamental aspect of financial strategy for centuries, promoting the idea that earnings can be utilized for further gain instead of being consumed. As markets and investment practices developed, particularly during the late 19th and 20th centuries, the practice of reinvesting became more structured, leading to the modern investment strategies we see today.