Disinvestment
Disinvestment is the process of selling off assets or withdrawing investments from a company, sector, or country, often for strategic, financial, or ethical reasons. Common examples include companies divesting from industries that no longer align with their core business strategy or investors withdrawing from markets due to political instability. Disinvestment is a key tactic in portfolio management, allowing investors to reallocate capital into more promising areas.
Key Takeaways
- Involves selling off assets or withdrawing investments.
- Driven by strategic, financial, or ethical considerations.
- Common in portfolio reallocation strategies.
- Used to exit declining industries or unstable markets.