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Reinvestment risk
Reinvestment riskThe risk that proceeds received in the future may have to be reinvested at a lower potential interest rate. RELATED TERMS-------------------------------------- Risk The possibility of loss; the amount that one may lose when investing. Proceeds Money received by the seller of an asset. Future Contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange. Lower To decrease (a price, tax rate, interest rate, etc.). Interest The amount of money a lender loans a borrower to pay for using the borrower's principal. SIMILAR TERMS-------------------------------------- Reinstatement The restoration of an insurance policy after it has lapsed for nonpayment of premiums. Reinsurance The sharing of large risks among two or more insurers. Reinver Inversiones, SICAV, S.A. Reinver Inversiones, SICAV, S.A. is a Spanish company listed at Madrid Stock Exchange. Its business activity is capital investment. Reinverplus, S.A., SICAV Reinverplus, S.A., SICAV is a Spanish company listed at Madrid Stock Exchange. Its business activity is capital investment. Reinvestment 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. Reinvestment date The date on which an investment's dividend or capital gains income is reinvested, if requested by the shareholder, to purchase additional shares. Also known as the ex-dividend date. Reinvestment effect The impact of a change in interest rates on the reinvestment rate. Reinvestment privilege A shareholder's right to reinvest dividends and buy more shares in the corporation or mutual fund. Reinvestment rate The rate at which an investor assumes interest payments made on a debt security can be reinvested over the life of that security. Reinvoicing center A central financial subsidiary an MNC uses to reduce transaction exposure by billing all home country exports in the home currency and reinvoicing to each operating affiliate in that affiliate's local currency. PREVIOUS AND NEXT TERMS-------------------------------------- Reinvestment 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. Reinvestment date The date on which an investment's dividend or capital gains income is reinvested, if requested by the shareholder, to purchase additional shares. Also known as the ex-dividend date. Reinvestment effect The impact of a change in interest rates on the reinvestment rate. Reinvestment privilege A shareholder's right to reinvest dividends and buy more shares in the corporation or mutual fund. Reinvestment rate The rate at which an investor assumes interest payments made on a debt security can be reinvested over the life of that security. Reinvestment risk Reinvoicing center A central financial subsidiary an MNC uses to reduce transaction exposure by billing all home country exports in the home currency and reinvoicing to each operating affiliate in that affiliate's local currency. Rejection Refusal by a bank to grant credit, usually because of the applicants financial history, or refusal to accept a security presented to complete a trade, usually because of a lack of proper endorsements or violation of rules of a firm. Related party transaction A business deal or arrangement between two parties who are joined by a special relationship prior to the deal. Relative form of purchasing power parity Theory that the rate of change in the prices of products should be somewhat similar, but not absolutely the same when measured in a common currency, as long as transportation costs and trade barriers are unchanged. Relative PE A firm or industry's price to earnings ratio divided by the market price to earnings ratio. We thank you for using the Financial Dictionary to search for Reinvestment risk. If you have a better definition for Reinvestment risk than the one presented here, please let us know by making use of the suggest a term option. This definition of Reinvestment risk may be disputed by other professionals. Our attempt is to provide easy definitions on Reinvestment risk and any other medical topic for the public at large.
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