Reinvestment risk

Definition:

The risk that proceeds received in the future may have to be reinvested at a lower potential interest rate.

Investing Essentials


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

Term of the Day

Reverse conversion

A technique in which brokerage firms earn interest on the stocks they hold for their customers by selling the short and investing the proceeds in money market accounts. The short positions are hedged... Read More

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio