Divesting: meaning, definitions and examples
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divesting
[ daɪˈvɛstɪŋ ]
financial context
Divesting refers to the act of selling off assets or investments, often for ethical, financial, or strategic reasons. It is commonly used in the context of reducing exposure to certain industries, such as fossil fuels or tobacco. Companies and investors may divest to improve their social responsibility profile or to reallocate capital to more profitable ventures. The process can also involve shedding non-core business units. Divesting can lead to a significant restructuring within an organization.
Synonyms
disinvest, liquidate, sell-off
Examples of usage
- The company is divesting its interests in coal mining.
- Many funds are divesting from companies that do not prioritize sustainability.
- He decided to divest his shares in the tech startup.
- Investors are increasingly divesting from fossil fuel companies.
Translations
Translations of the word "divesting" in other languages:
🇵🇹 desinvestindo
🇮🇳 विस्थापन
🇩🇪 Veräußern
🇮🇩 melepaskan
🇺🇦 виведення активів
🇵🇱 wyprzedaż
🇯🇵 売却する
🇫🇷 désinvestissement
🇪🇸 desinversión
🇹🇷 varlık satışı
🇰🇷 매각하기
🇸🇦 التخلي عن الأصول
🇨🇿 odprodej
🇸🇰 odpredaj
🇨🇳 剥离
🇸🇮 odprodaja
🇮🇸 afhending
🇰🇿 активтерді сату
🇬🇪 გაყიდვა
🇦🇿 satmaq
🇲🇽 desinversión
Etymology
The term 'divest' originates from the Latin word 'divestire', meaning 'to unrobe' or 'to strip'. This word evolved in the early 19th century to refer to the act of taking away or removing something. In economic contexts, it began to take on the meaning of selling or unloading assets during financial decisions and corporate restructuring. Over time, divestment became associated with socially responsible investing, where individuals and organizations sought to align their financial actions with their ethical beliefs. Today, the concept of divesting is widely discussed in relation to environmental, social, and governance (ESG) concerns, as more investors choose to remove their funds from companies that do not meet certain ethical standards.