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Reinvestment: meaning, definitions and examples

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reinvestment

 

[ riːɪnˈvɛstmənt ]

Noun
Context #1 | Noun

financial strategy

Reinvestment refers to the practice of using profits gained from an investment to buy additional assets or investments. This can enhance potential future returns by increasing the overall amount of capital invested. It is commonly used by businesses and investors to grow their investment portfolios over time.

Synonyms

reallocation, reapplication, redeployment.

Examples of usage

  • The company's reinvestment strategy led to significant growth in market share.
  • Investors often choose reinvestment of dividends to maximize their returns.
  • Reinvestment in new technology can drive innovation and profits.

Translations

Translations of the word "reinvestment" in other languages:

🇵🇹 reinvestimento

🇮🇳 निवेश पुनर्निवेश

🇩🇪 Reinvestition

🇮🇩 reinvestasi

🇺🇦 реінвестиція

🇵🇱 reinvestycja

🇯🇵 再投資 (さいとうし)

🇫🇷 réinvestissement

🇪🇸 reinversión

🇹🇷 yeniden yatırım

🇰🇷 재투자 (재투자)

🇸🇦 إعادة الاستثمار

🇨🇿 reinvestice

🇸🇰 reinvestícia

🇨🇳 再投资 (zài tóuzī)

🇸🇮 reinvesticija

🇮🇸 endurfjárfesting

🇰🇿 қайта инвестициялау

🇬🇪 გადატვირთვა (gadatvirthva)

🇦🇿 yenidən sərmayə qoyma

🇲🇽 reinversión

Etymology

The term 'reinvestment' originated from the combination of the prefix 're-', meaning 'again' or 'back', and 'investment', which comes from the Latin 'investire', meaning 'to clothe' or 'to put on'. The concept itself has evolved alongside financial markets and investor strategies, becoming prominent in the 20th century as more individuals and businesses began to seek ways to grow their wealth sustainably. The focus on reinvestment reflects a shift from merely extracting profits to employing those profits for further growth. This practice is now a cornerstone of investment philosophy, emphasizing the importance of compounding returns over time and the idea that effectively reinvesting resources can yield substantial long-term financial benefits.

Word Frequency Rank

Positioned at #21,478, this word is part of extensive vocabulary. It's relatively rare in general usage but may be important in specific fields or formal writing.