Disinvestment Meaning: Definition, Examples, and Translations

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disinvestment

[หŒdษชsษชnหˆvษ›stmษ™nt ]

Definition

Context #1 | Noun

finance

The action or process of selling off subsidiary business interests or investments.

Synonyms

divestment, privatization, sell-off.

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Word Description / Examples
disinvestment

Used in situations where assets or stocks are reduced or withdrawn for strategic, moral, or financial reasons.

  • The company announced disinvestment from its unprofitable branches.
  • Disinvestment in public services has led to a deterioration in quality.
divestment

Typically used when a company or organization sells off assets, often to comply with regulatory requirements, financial reasons, or in response to social or political pressures.

  • The university committed to divestment from fossil fuels due to student protests.
  • Pressure from activist groups resulted in the firm's divestment from controversial industries.
sell-off

Typically used in contexts referring to a rapid sale of assets or securities, sometimes conveying a sense of urgency or financial distress, and can carry a negative connotation.

  • The sudden sell-off of the company's assets raised concerns among investors.
  • A sell-off in the stock market sent prices plummeting.
privatization

Refers to the process of transferring ownership of a business, enterprise, or public service from the government to private entities, often used in economic and political discussions.

  • The government's privatization of public utilities was met with mixed reactions.
  • Privatization of the healthcare system has been a major political issue.

Examples of usage

  • Many companies have engaged in disinvestment to focus on their core operations.
  • The government announced a disinvestment plan to privatize state-owned enterprises.

Translations

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Origin of 'disinvestment'

The term 'disinvestment' originated in the field of finance in the mid-20th century. It is derived from the prefix 'dis-' meaning 'do the opposite of' and 'investment' referring to the act of putting money into something with the expectation of profit. Disinvestment gained popularity as a strategy for companies and governments to streamline their operations, reduce debt, or privatize certain assets.


Word Frequency Rank

At rank #29,651, this word represents specialized academic or technical vocabulary. It's less frequently encountered but may be valuable in specific contexts.