Reinvestment refers to the process of using profits or earnings from an investment to purchase additional assets or securities instead of taking the money as cash. This strategy can help grow the initial investment over time, as the reinvested funds can generate additional returns. In the context of businesses, reinvestment often involves using profits to improve operations, expand product lines, or enhance marketing efforts. This can lead to increased revenue and market share. Individuals may also reinvest dividends from stocks or interest from bonds to build wealth over time, benefiting from the power of compound interest.