| InvestHub.com's Finance Dictionary and Glossary of Investment Terms reinvestment Definition 1.
Using the dividends, interest, or profits from an investment to buy more of that investment, rather than receiving a cash payout. Reinvestment can sometimes delay or reduce capital gains taxes. | Definition 2.
Using dividends, interest, and capital gains earned in a mutual fund investment to purchase additional shares, rather than receiving the distributions in cash. |
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