Divest
/daɪˈvɛst/
verbC1
Definition
Divest means to sell or get rid of something important, like money, property, or rights. It often happens when a person or company wants to stop owning something or wants to avoid a problem. Divesting is a deliberate action to remove or give up ownership or control.
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⚡ See It in Action
To sell or get rid of assets or investments
- •The company decided to divest its shares in the smaller business.
- •Many firms divest parts of their operations to focus on core activities.
- •Investors sometimes divest from industries they find unethical.
To remove rights, power, or property from someone or something
- •The government plans to divest the company of its monopoly rights.
- •He was divested of his title after the scandal.
- •Laws can divest people of certain privileges.
🧲 Make It Stick
- ✓Think of "divest" like "give up," but more formal and often about money or property, not just anything
- ✓Picture a company selling a part of its business, like a store closing and selling its things to others
- ✓It's the feeling when you decide to stop holding onto something because it no longer fits your plans or values
- ✓Sounds like "die-VEST" → Imagine taking off a heavy vest (clothing) to feel lighter, like getting rid of something you carry
- ✓Think of a person cleaning their closet and deciding to remove old clothes they don’t want anymore, to make space for new things
- ✓NOT like "invest" (to put money into something to get more back), divest means to take money or ownership out, the opposite action
- ✓NOT like "lose" (which happens by accident), divest is a choice to remove or sell something on purpose
- ✓NOT like "donate" (giving away for free), divest can involve selling or just removing, not always giving as a gift
🔄 Try Other Words
- •Sell off: to sell parts of a business or property (Use when talking about selling things to get money)
- •Dispose of: to get rid of something unwanted (Use when removing something, not always by selling)
- •Relinquish: to give up control or rights (Use in formal or legal contexts)
- •Strip: to take away something completely (Use when removing rights or power)
🔍 Unboxing
- •Prefix: "di-" meaning "away" or "off"
- •Root: "vest" from Latin "vestire," meaning "to clothe" or "to dress"
- •Etymology: Originally meaning to undress or remove clothing; now used figuratively to mean removing ownership or rights
- •Historical development: Used since the 1600s in English for removing clothes or rights; in business, it means selling or giving up assets
- •Modern usage: Common in finance and law when companies or people remove investments or rights
💭 Reflect & Connect
•What reasons might make a company or person decide to divest something important?
•How does divesting differ from simply losing or donating something?
Fill in the blanks with the correct word:
1.The company chose to divest its ___ in the overseas market to focus on local growth.
2.Investors often divest from industries that ___ harm to the environment.
3.Divest means a deliberate action to ___ ownership or control, not an accidental loss.
4.After the scandal, he was divested ___ his leadership role.
5.When a business divests, it usually ___ assets instead of keeping them.
6.Divest is the opposite of invest because you ___ money or property rather than putting it in.
7.Governments sometimes divest companies of ___ rights to promote competition.