Reinvested funds from retained earnings theoretically belong to A. bond holders. B. common stockholders. C. employees. D. All of the options Solution The correct answer is option B i.e., Common stockholders Retained earnings are earnings available to stockholders after all other expenses including tax. In Retained earnings after payment of preference dividend to preference stockholders the remaining balance belongs to common stockholders. Therefore, if funds are reinvested from retained earnings those are theoretically belongs to common stockholders..