What is reinvestment? How to use in English

Discover the meaning of reinvestment in English, its pronunciation, and how to use it correctly in real-life situations. See examples and easy memorization tips.

Definition & pronunciation of reinvestment

reinvestmentnoun
tái đầu tư
/ˌriːɪnˈvestmənt//ˌriːɪnˈvestmənt/

Where does the word reinvestment come from?

The term "reinvestment" refers to the act of using profits, income, or capital gains earned from an initial investment to purchase new assets or to finance business operations. In essence, it involves returning funds that have already been invested back into a company or portfolio for the purpose of generating higher returns in the future. Reinvestment can take many forms, such as buying additional shares of stock, purchasing bonds, investing in property, or reinvesting profits into a company's expansion or development. The practice of reinvestment can help companies to further grow their assets, compound their returns, and preserve the value of their capital over time.

Vocabulary summary reinvestment

type noun

meaning reinvestment

Example of vocabulary reinvestmentnamespace

In order to expand our operations, we plan to reinvest a significant portion of our profits into product development and marketing.
The company's reinvestment strategy aims to balance short-term profitability with long-term growth opportunities.
Following the success of our initial investment, we will reinvest our returned dividends into new business ventures.
Our reinvestment plan will prioritize funding for research and development, allowing us to remain at the forefront of innovation in our industry.
The government's decision to reinvest tax revenues into infrastructure projects will have a positive impact on the local economy.