Funnelling of profits back into a company to enhance its operations. An individual stockowner can also reinvest by designating that dividends paid on stock will be used to purchase additional shares of that stock.

where income from an investment is used to make an additional investment, generally at no fee, increasing the potential to receive higher capital growth and distributions in the future.

Reinvestment is the use of capital gains, including interest, dividends, or profit, to buy more of the same investment. For example, the dividends received from stock holdings may be reinvested by buying more shares of the same stock.