Use 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
Using dividends, interest and capital gains earned in an investment to purchase additional shares, rather than receiving the distributions in cash
An option whereby dividend and capital gains distributions automatically purchase new fund shares
Act of purchasing additional shares in a mutual fund or stock that pays dividends or capital gains instead of receiving such distributions in cash
{i} restoration a title or degree; act of granting power again; act of redepositing money for future profit
With stocks, using dividends to purchase additional shares instead of receiving payments in cash
using dividends, interest and capital gains earned in a mutual fund investment to purchase additional shares, rather than receiving the distributions in cash Risk - measurable possibility that your investment will decline in value or not appreciate As a function of portfolio volatility, stocks are generally considered most risky, bonds are less risky, and money market funds are the least risky Rollover IRA - provision of the law governing IRAs that enables anyone receiving a lump-sum payment from a pension, profit-sharing, or salary reduction plan to transfer the amount into an IRA within 60 days, without incurring any tax liabilities or premature distribution penalties Roth IRA - tax-deferred retirement account Unlike a traditional IRA, contributions to a Roth IRA are not tax-deductible, but there is no tax on withdrawals as long as the taxpayer is age 59½ and the account has been open for five years back to top
Use of dividend distribution to buy additional securities Many unit trust or mutual fund offer the automatic dividend reinvestment option to unitholders
An agreement between management company and unitholder by which income distributions are used to buy additional units in the fund
risk [General] uncertainty regarding yields that will be available on reinvestment of proceeds from current investments [similar to ASOP No 20]; distinguished from ASSET RISK, CREDIT RISK, INVESTMENT-RATE-OF-RETURN RISK, INVESTMENT RISK, MARKET RlSK
A strategy for allocating funds that can be "saved" through redeployment, refinancing or reductions in spending to new/alternative supports and services It puts money saved from cost avoidance of averted bad outcomes into prevention strategies
Using earnings or distributions from an investment to purchase additional shares in that security, rather than taking them as cash