Legal Dictionary of Pakistan

Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.

Reinvestment

1. The addition of interest earned on a monetary investment to the principal sum. 2. A second, additional, or repeated investment; esp., the application of dividends or other distributions toward the purchase of additional shares (as of a stock or a mutual fund).

dividend-reinvestment plan

A companysponsored program that enables common shareholders to reinvest their dividends, plus additional voluntary payments, into shares of the entity's common stock, usu. with no sales charge, and sometimes at a discount from the stock's market price.