Divestment: meaning, definitions and examples

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divestment

 

[ dɪˈvɛstmənt ]

Noun
Context #1 | Noun

financial strategy

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

Synonyms

disinvestment, liquidation, sale.

Which Synonym Should You Choose?

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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.

  • The company announced its divestment from the coal industry to focus on renewable energy.
  • Due to regulatory pressures, many banks are considering divestment from fossil fuels.
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.

  • There has been significant disinvestment in the public education sector over the past decade.
  • The government's disinvestment strategy includes selling shares in state-owned enterprises.
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.

  • The house is up for sale due to the owner's relocation.
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.

  • The company went into liquidation due to unsustainable debt levels.
  • All movable assets were sold during the liquidation process.

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.
Context #2 | Noun

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?

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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.

  • The company announced a divestment of its coal mining operations to focus on renewable energy.
  • Investor groups are calling for divestment from fossil fuel stocks.
withdrawal

Used when removing or taking back something that has been invested, committed, or involved—frequently used in contexts involving money, troops, or statements.

  • The government's sudden withdrawal of troops from the region surprised many.
  • She requested a withdrawal of $500 from her savings account.
cancellation

Used when an event, agreement, or plan is officially terminated. Commonly used for activities, contracts, or services that are planned or ongoing.

  • The cancellation of the concert disappointed many fans.
  • Due to unforeseen circumstances, the meeting has been moved to next week instead of cancellation.
dissociation

Used when someone or something is deliberately separated or distanced from another entity or idea. Often used in psychological, social, or organizational contexts.

  • The artist's latest work attempts to show the dissociation between modern society and nature.
  • His dissociation from the controversial policy was noted by the media.

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

Translations of the word "divestment" in other languages:

🇵🇹 desinvestimento

🇮🇳 निवेश हटाना

🇩🇪 Desinvestition

🇮🇩 divestasi

🇺🇦 виведення капіталу

🇵🇱 dezinwestycja

🇯🇵 売却

🇫🇷 désinvestissement

🇪🇸 desinversión

🇹🇷 yatırım azaltma

🇰🇷 투자 철회

🇸🇦 تخلي عن الاستثمار

🇨🇿 divestice

🇸🇰 divestment

🇨🇳 剥离投资

🇸🇮 divesticija

🇮🇸 afskipt

🇰🇿 инвестициядан бас тарту

🇬🇪 დაზღვევის შემცირება

🇦🇿 investisiyadan imtina

🇲🇽 desinversión

Etymology

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.

See also: divest, vest, veste, vestment.

Word Frequency Rank

At rank #29,706, this word represents specialized academic or technical vocabulary. It's less frequently encountered but may be valuable in specific contexts.