Plow back

Definition:

To reinvest earnings in a business rather than pay out them out as dividends. Common practice in high-growth companies.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Extrapolative statistical models

Models that apply a formula to historical data and project results for a future period. Such models include the simple linear trend model, the simple exponential model, and the simple autoregressive... Read More

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