plow back

plow back definition - business

plow back

To reinvest earnings in additional income-producing assets. Firms that plow back earnings rather than pay the earnings in dividends tend to experience more rapid increases in earnings per share.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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