Reinvestment of dividends? Reinvest capital gains? What does it mean?

Hello everyone! I started two small (LOL very little) in an online portfolio / trading site. One is a database of individual portfolio and the other is a Roth IRA. For each of my actions, site website gives me the following options: 1) reinvest dividends? (yes or no) 2) reinvest capital gains? (Yes or No) What is the difference between the two? Do you reinvest dividends or capital gains? I know that the answers have the potential to be long, but I'd love to know all you have to say! Thanks for reading my question.

When mutual funds hold stocks that pay dividends, the fund distributes dividends to fund shareholders, often on a quarterly basis. You may choose to reinvest dividends. Some companies offer dividend reinvestment plans that you can buy fractional shares of a company with dividends. When a mutual fund share is sold for a profit, generating a capital gain. Like when someone has a stock and sells it. Usually, the end of the year, the fund distributes these capital gains in proportion to the fund shareholdfers. You can either take cash or reinvested in the fund to buy more actions.

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