Business, Legal & Accounting Glossary
To sell off. Often referred to in the context of a company selling off divisions that are either a poor fit within the overall corporate strategy, or showing poor financial performance.
To divest is to liquidate, or sell off, one’s investment in a company or government body. Many people who divest do so for political or ethical reasons, such as perceived government oppression of a minority population. Other reasons to divest are anti-trust violations, poor performance, or changes in a company’s leadership. Individuals, businesses, and government bodies may divest their holdings. For example, many businesses started to divest from South Africa in the 1980s in protest of that nation’s apartheid policies. When a person or company chooses to divest, it may be taking a very large risk with its money. A business may also divest one of its divisions if it is not performing well or working within the business’s overall plan.
We decided to divest our interests as better investment opportunities were available so we would explore those and make a decision.
After digital cameras hit the market, my company decided to divest itself of its traditional film camera division and got out of that industry.
We had recently made the decision to divest those divisions providing minimal contributions to overall revenue and to concentrate our efforts within our core businesses.
exchangeable instrument
spinoff
registration right
protest divestment
divestiture
divestment
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This glossary post was last updated: 29th October, 2021 | 0 Views.