Is it correct that stocks and mutual funds can distribute dividends and capital gains automatically without account holders' intervention, and then reinvest the distributed to buy new shares?
What is 'Reinvestment'
Reinvestment is using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash.
In terms of stocks, it is the reinvestment of dividends to purchase additional shares.
In terms of mutual funds, it is the reinvestment of distributions and dividends to purchase additional units of that fund.
In terms of tax gain/loss harvesting, it is the realization of losses to offset a capital gains liability.
When it says "an investment or mutual fund", is a mutual fund not an investment? If no, what is the definition of an investment?
When it says "In terms of stocks", why does it only mention distribution of dividends but not distribution of capital gains?
When it says "In terms of mutual funds", it says about "the reinvestment of distributions and dividends". Does "distributions" not include distributions of "dividends"? why does it mention "distributions" parallel to "dividends"?
Does reinvestment only apply to interest or dividends, but not to capital gain?