The process of combining two or more elements to form a new whole, often used in the context of finance to describe the process of generating earnings on an asset's reinvested earnings.

The compounding of interest can significantly increase the value of an investment over time.

The act of mixing or combining ingredients, especially in pharmacy, to create a medication or chemical compound.

The pharmacist was skilled in the compounding of custom medications for patients with specific needs.

The process of forming a new word by combining two or more existing words or morphemes.

"Babysitter" is created through the compounding of "baby" and "sitter."

compoundinggerund / present participle

Relating to or resulting from the act of compounding; accumulating or combining over time.

The compounding interest effect can be dramatic over several decades.

compoundverb

To make something worse by adding to it.

His financial problems were compounded by his recent job loss.

To calculate interest on both the initial principal and the accumulated interest from previous periods.

The bank compounds interest quarterly on savings accounts.

To combine or mix two or more elements or substances.

The pharmacist compounded the ingredients to create the medication.

To settle (a debt, claim, or legal matter) by agreement, often by making concessions; to come to terms.

The company compounded with its creditors to avoid liquidation.