Divestment Meaning: Definition, Examples, and Translations
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divestment
[dษชหvษstmษnt ]
Definitions
financial strategy
The action or process of selling off subsidiary business interests or investments.
Synonyms
disinvestment, liquidation, sale.
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| divestment |
This term is typically used in a financial or business context when an organization decides to sell off its assets or investments.
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| disinvestment |
Often used interchangeably with divestment, this term similarly refers to the reduction of capital or investment by pulling out of certain markets or securities. It can also imply a broader negative connotation of neglect or reduction in investment.
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| sale |
Generally used in everyday language, this term refers to the act of selling something in exchange for money. It can cover a wide range of transactions, from small personal items to large business assets.
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| liquidation |
This term is often used in the context of business when a company is closed down and its assets are sold off, usually to pay off debts.
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Examples of usage
- The company decided on divestment of its non-core assets to focus on its main business operations.
- After the divestment of the overseas division, the company saw a significant increase in profits.
social movement
The act of selling investments in companies or industries that are considered unethical or morally unacceptable.
Synonyms
cancellation, dissociation, withdrawal.
Which Synonym Should You Choose?
| Word | Description / Examples |
|---|---|
| divestment |
Used primarily in financial or business contexts when a company or individual disposes of assets or investments. This can be voluntary or due to external pressures like social or environmental concerns.
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| withdrawal |
Used when removing or taking back something that has been invested, committed, or involvedโfrequently used in contexts involving money, troops, or statements.
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| cancellation |
Used when an event, agreement, or plan is officially terminated. Commonly used for activities, contracts, or services that are planned or ongoing.
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| dissociation |
Used when someone or something is deliberately separated or distanced from another entity or idea. Often used in psychological, social, or organizational contexts.
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Examples of usage
- The divestment campaign aimed to pressure the company to stop supporting fossil fuel projects.
- Many universities have committed to divestment from companies involved in human rights violations.
Translations
To see the translation, please select a language from the options available.
Interesting Facts
Historical Context
- The divestment movement gained global attention in the 1980s when many university endowments withdrew investments from companies operating in apartheid South Africa.
- In recent years, divestment from fossil fuels has become a significant movement, as many institutions seek to combat climate change by eliminating their stakes in oil and gas companies.
- The divestment tactic is often used as a form of protest, aiming to signal disapproval of certain business practices or geopolitical situations.
Economics
- Divestment can lead to a reallocation of capital, often redirected towards more socially responsible or sustainable investments.
- In financial markets, divestment can affect stock prices and investor behavior, especially if it involves major companies or industries.
- Research suggests that companies adopting divestment strategies in response to social pressures can improve their public image over time.
Environmental Impact
- Divestment from fossil fuels is seen by many as a critical tool for achieving global climate goals, as it encourages renewable energy investments.
- Organizations that create divestment campaigns often aim to raise awareness about climate-related issues and influence public policy.
- The impact of divestment is not only financial; it can also shift cultural perceptions surrounding sustainability and ecological responsibility.
Social Justice
- Divestment has been used as a strategy to combat social injustices, with movements encouraging businesses and universities to withdraw funds from industries perceived as harmful or unethical.
- It provides a mechanism for individuals and institutions to express their values, aligning financial practices with personal moral beliefs.
- By choosing to divest, communities can collectively mobilize resources and influence change at a political level.
Origin of 'divestment'
Main points about word origin
- The term 'divestment' comes from the prefix 'di-' meaning 'apart' and 'vest' meaning 'to invest or to clothe', illustrating the idea of taking away what was once placed.
- The word has been in use since the early 20th century, gaining increasing prominence during the civil rights and anti-apartheid movements.
- Originally, it referred to disinvestment in businesses or entities morally influenced by societal values.
The term 'divestment' originated in the financial sector, referring to the process of selling off assets or investments. However, it gained broader popularity in the 1980s with the rise of social movements advocating for divestment from companies involved in apartheid in South Africa. Since then, divestment has been used as a strategy to promote ethical and sustainable practices in both finance and social activism.