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Reinvestment |
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ReinvestmentUse of investment income to buy additional securities. Many mutual fund companies and investment services offer the automatic reinvestment of dividends and capital gains distributions as an option investors.Reinvestment Similar MatchesReinvestment riskReinvestment riskThe risk that proceeds received in the future may have to be reinvested at a lower potential interest rate. Reinvestment effectReinvestment effectThe impact of a change in interest rates on the reinvestment rate. Community Reinvestment Act (CRA)Community Reinvestment Act (CRA)Enacted by Congress in 1977, the CRA encourages banks to help meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes, while maintaining safe and sound operations. Automatic reinvestmentAutomatic reinvestmentSee: Constant dollar plan. Reinvestment rateReinvestment rateThe rate at which an investor assumes interest payments made on a debt security can be reinvested over the life of that security. Further Suggestionsdividend reinvestment plan |
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