Divestment

DEFINITION of 'Divestment'

The process of selling an asset. Also known as divestiture, it is made for either financial or social goals. Divestment is the opposite of investment.

BREAKING DOWN 'Divestment'

Generally you'd just say that you are selling an asset. The term divestment is more appropriate however in the following contexts:

1) A change in corporate strategy - a firm might say that they are divesting a particular subsidiary to focus on their core business.

2) Social goals - there are many political reasons why investors might reduce investments. A notable example was the withdrawal of American firms from South Africa during apartheid.

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