The phrase "reinvestment option" refers to a decision you can make to take any earned money and put it back into an investment instead of withdrawing it. This allows you to potentially earn more returns on your investment over time. Full definition
Typically an issuer will call a bond when interest rates fall, potentially leaving investors with a capital loss or loss in income and less favorable reinvestment options. (fidelity.com)
If you are using the dividend reinvestment option in your mutual funds, chances are you are confused about the implications of taxes in the new LTCG regime. (unovest.co)
However, since I'm not really a «trader», I think that Sharebuilder's dividend reinvestment option probably makes them a better choice for an intermediate to longer term investor. (thedigeratilife.com)