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Reinvestment

Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash.

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Q: What is the definition of reinvestment?
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What is the definition of reinvestment assumption?

The definition of reinvestment assumption is an assumption made concerning the rate of return that can be earned on the cash flows generated by capital budgeting projects. The cash flow can be interest, earnings, dividends, or rent.


Dividend reinvestment tax free?

no, they are not tax free. The dividends are taxed in the year paid. The dividend reinvestment is a purchase of stock just as if you used cash. You have to track every single purchase transaction of stock from every reinvestment to keep track of the cost basis of each stock, so as to cost it out when you sell. Motley fool has some nice info on this


What are the advantages of reinvestment rate risk over interest rate risk?

B


What is IRR reinvestment rate assumption?

The IRR reinvestment rate assumption is the mistaken assumption that the IRR of a project implicitly assumes that all positive cash flows from the project that occur in periods before the end of the project will be reinvested at the rate of IRR per period until the end of the project.


What is the difference between interest rate risk and reinvestment rate risk?

Reinvestment risk When interest rates are declining, investors have to reinvest their interest income and any return of principal, whether scheduled or unscheduled, at lower prevailing rates.Interest rate risk When interest rates rise, bond prices fall; conversely, when rates decline, bond prices rise. The longer the time to a bond's maturity, the greater its interest rate risk.

Related questions

What is the definition of reinvestment assumption?

The definition of reinvestment assumption is an assumption made concerning the rate of return that can be earned on the cash flows generated by capital budgeting projects. The cash flow can be interest, earnings, dividends, or rent.


Where can you find details of the American Recovery and Reinvestment Act?

You can find details of the American Recovery and Reinvestment Act at Recovery.gov.


What is promoted by the Community Reinvestment Act?

These laws include the Community Reinvestment Act, which promotes community credit needs.


What does DRP stand for?

Dividend Reinvestment Plan......


What has the author Dickie Lee Fox written?

Dickie Lee Fox has written: 'Directory of Dividend Reinvestment Plans' -- subject(s): Directories, Dividend reinvestment


Does Diageo operate a dividend reinvestment plan?

Yes


The American recovery and reinvestment act provided support bye?

The American recovery and reinvestment act provided support by creating and saving jobs. Also, it provided relief programs.


Is the stimulus bill the same as the American Recovery and Reinvestment Act of 2009?

yes the American recovery and reinvestment act (ARRA) is the same thing as the stimulus package. the (ARRA) is the real name.


What is the problem with reinvestment rate assumption?

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What economic prosperity required reinvestment of profits in capital expansion?

Marx


Dividend reinvestment tax free?

no, they are not tax free. The dividends are taxed in the year paid. The dividend reinvestment is a purchase of stock just as if you used cash. You have to track every single purchase transaction of stock from every reinvestment to keep track of the cost basis of each stock, so as to cost it out when you sell. Motley fool has some nice info on this


How is the monthly dividends paid out?

every quarter, either cash or stock reinvestment