2. A reduction in capital expenditure, or the decision of a company not to replenish depleted capital goods.
1. A company or government organization will divest an asset or subsidiary as a strategic move for the company, planning to put the proceeds from the divestiture to better use that garners a higher return on investment.
2. A company will likely not replace capital goods or continue to invest in certain assets unless it feels it is receiving a return that justifies the investment. If there is a better place to invest, they may deplete certain capital goods and invest in other more profitable assets.
Alternatively a company may have to divest unwillingly if it needs cash to sustain operations.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
disinvestment — 1938, first recorded in writings of J.M. Keynes, from DIS (Cf. dis ) + INVESTMENT (Cf. investment). The verb disinvest in this sense is a back formation attested from 1961. Related: Disinvested; disinvesting … Etymology dictionary
disinvestment — [dis΄in vest′mənt] n. a diminution or expenditure of capital investment, as in the failure to replenish inventories or in the sale of a capital item … English World dictionary
Disinvestment — This article is about a form of political sanction. For the routine business practice, see divestment. Disinvestment, sometimes referred to as divestment, refers to the use of a concerted economic boycott, with specific emphasis on liquidating… … Wikipedia
disinvestment — A reduction in capital investment reflected by a decrease in capital goods and a company s decision not to replace depleted capital goods. Bloomberg Financial Dictionary * * * disinvest dis‧in‧vest [ˌdɪsɪnˈvest] verb [intransitive] ECONOMICS to… … Financial and business terms
disinvestment — noun Date: 1936 consumption of capital; also the withdrawing of investment … New Collegiate Dictionary
disinvestment — /dis in vest meuhnt/, n. the withdrawal of invested funds or the cancellation of financial aid, subsidies, or investment plans, as in a property, neighborhood, or foreign country. [1935 40; DISINVEST + MENT] * * * … Universalium
disinvestment — noun the process of disinvesting; negative investment … Wiktionary
disinvestment — dis|in|vest|ment [ˌdısınˈvestmənt] n [U and C] technical the process of taking your money out of a company by selling your ↑shares in it ≠ ↑investment … Dictionary of contemporary English
disinvestment — dis|in|vest|ment [ ,dısın vestmənt ] noun uncount the act of taking money out of a particular country, industry, or business, and investing it somewhere else … Usage of the words and phrases in modern English
disinvestment — the disposal of shares etc. as a political gesture Not just a normal sale for economic reasons but because of opposition to an activity in which the corporation participates. The rare alternative, divestiture, literally means dispossession… … How not to say what you mean: A dictionary of euphemisms