reinvestment

Reinvestment is the process of using the earnings or profits generated by an investment to buy more assets or improve existing ones, rather than taking the money as cash or a return. For example, a company might reinvest its profits into expanding operations, developing new products, or upgrading equipment. This strategy aims to grow the investment's value over time, creating compound growth. Reinvestment can be used by individuals, businesses, or funds and often helps to accelerate financial growth by putting earnings back into the original investment or new opportunities.