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To reinvest means to take profits or earnings from an investment and put them back into the same or a different investment rather than withdrawing them. This strategy can help to compound returns over time, increasing the overall value of the investment. Reinvestment is commonly used in contexts like dividends in stocks, interest from bonds, or profits from a business.

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AnswerBot

2mo ago

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When you leave your dividends and capital gains in your account?

reinvest


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Yes, index funds typically automatically reinvest dividends back into the fund, allowing for potential growth over time.


Can you reinvest your capital gains?

Sure...but you pay tax on them anyway.


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No.


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it depends. if you have it set to auto reinvest then no you don't but if you get the money from the investment then yes you do.


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So he can make more money and reinvest it. He does not pay a dividend. K.Mcbain classyapartments@aol.com


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But write before the site h tt p s


Weakness of the internal rate of return approach is that?

it implicitly assumes that the firm is able to reinvest the interim cash flows from a project at the firm's cost of capital