Divestment

Part of Speech

Noun

Pronunciation

/daɪˈvɛstmənt/ (American) | /dɪˈvɛstmənt/ (British)

Definitions

• The process of selling off assets, investments, or subsidiaries for financial, ethical, or regulatory reasons.
• The act of withdrawing financial support or investment from a company, industry, or country.
• The reduction of an organization's business interests in a particular sector.

Usage Examples

• The university announced its divestment from fossil fuel companies.
• Divestment from unprofitable sectors helped the company regain financial stability.
• The government's policy encouraged the divestment of foreign assets.

Etymology

Derived from "divest" (from Latin "dis-" meaning "apart" and "vestire" meaning "to clothe") combined with the noun-forming suffix "-ment," indicating an action or process.

Synonyms

• Disinvestment
• Liquidation
• Sell-off
• Asset disposal

Antonyms

• Investment
• Acquisition
• Retention
• Expansion

Translations

Regional Pronunciation Variations

• American English: /daɪˈvɛstmənt/
• British English: /dɪˈvɛstmənt/

Historical Usage

The concept of divestment gained prominence in the 20th century, especially in economic and ethical movements, such as the divestment from South Africa during apartheid.

Cultural Nuances

Divestment is often associated with ethical investing and corporate responsibility, where investors withdraw from industries like fossil fuels, arms manufacturing, or companies involved in human rights violations.

More Information

Divestment strategies are commonly used by businesses and governments to restructure operations, comply with regulations, or promote ethical investments. The impact of divestment can be seen in political, economic, and environmental movements worldwide.