Reinvestment" means:

A. new investment in new operations.

B. additional investment in existing operations.

C. new investment by new shareholders.

D. the reinvestment of earnings into new projects.

Respuesta :

Answer: Option B

Explanation: The process under which the existing shareholders of a company uses their income from investment such as dividends interest etc to purchase the security again is called reinvestment. Sometimes the shareholders do no receive cash and straightly asks the company to compensate them in shares.

Hence, from the above we can conclude that the correct option is B.