FTB-C000112 / Financial concept

Reinvestment

Reinvestment is the use of a distribution or proceeds to acquire additional exposure under a stated timing and price convention.

Also known asdistribution reinvestment

Intermediate 3 linked topicsPublished

Definitions

In plain terms

Total-return indices commonly model dividends as reinvested, but the reinvestment date, tax assumption, and price are methodology choices.

Technical

A reinvestment rule specifies eligible cash, ex or payment timing, reference price, taxes, FX, fractional units, fees, and treatment of corrections.

Scope

Modeled reinvestment is not proof that an investor actually received that execution.

Examples

  • A governed calculation records reinvestment with its exact basis, effective time, source, and units.

Common misconceptions

  • Reinvestment does not have one universal treatment without the applicable methodology, event terms, and data context.

Concept relationships

Prerequisites

Related

Required by

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D02-F01-A03 Important
  • D03-F04-A02 Important
  • D03-F04-A03 Important

Evidence and governance

  1. S&P Dow Jones Indices Index Mathematics Methodology S&P Dow Jones Indices · first party methodology

    Supports: preferred label, short definition, technical definition

    Limits: Authoritative for the provider's indices; conventions are not universal defaults for every index or security-level return series.

  2. Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract

    Supports: variant distinction

    Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.

Reviewed by
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.