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Divestment

 

 
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Divestment
 
 
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In finance
Finance

The field of finance refers to the concepts of time, money and risk and how they are interrelated. Banks are the main facilitators of funding through the provision of credit, although private equity, mutual funds, hedge funds, and other organizations have become important....
 and economics
Economics

File:Ballard Farmers' Market - vegetables.jpgEconomics is the Social sciences that studies the Production theory basics, Distribution , and Consumption of Good and Service ....
, divestment or divestiture is the reduction of some kind of asset
Asset

In business and accounting, assets are everything of value that is owned by a person or company. It is a claim on the property your income of a borrower....
 for either financial or ethical objectives. A divestment is the opposite of an investment
Investment

Investment or investing is a term with several closely-related meanings in business management, finance and economics, related to Saving or deferring Consumption ....
.

n the term is used as a means to grow financially in which a company sells off a business unit in order to focus their resources on a market it judges to be more profitable, or promising.






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In finance
Finance

The field of finance refers to the concepts of time, money and risk and how they are interrelated. Banks are the main facilitators of funding through the provision of credit, although private equity, mutual funds, hedge funds, and other organizations have become important....
 and economics
Economics

File:Ballard Farmers' Market - vegetables.jpgEconomics is the Social sciences that studies the Production theory basics, Distribution , and Consumption of Good and Service ....
, divestment or divestiture is the reduction of some kind of asset
Asset

In business and accounting, assets are everything of value that is owned by a person or company. It is a claim on the property your income of a borrower....
 for either financial or ethical objectives. A divestment is the opposite of an investment
Investment

Investment or investing is a term with several closely-related meanings in business management, finance and economics, related to Saving or deferring Consumption ....
.

Divestment for financial goals

Often the term is used as a means to grow financially in which a company sells off a business unit in order to focus their resources on a market it judges to be more profitable, or promising. Sometimes, such an action can be a spin-off
Spin-off

A spin-off is a new organization or entity formed by a split from a larger one, such as a television series based on a pre-existing one, or a new company formed from a university research group or business incubator....
. (For the United States); Divestment of certain parts of a company can occur when required by the Federal Trade Commission
Federal Trade Commission

The Federal Trade Commission is an Independent agencies of the United States government, established in 1914 by the Federal Trade Commission Act....
 before a merger with another firm is approved. A company can divest assets to wholly owned subsidiaries.

The largest, and likely most-famous, corporate divestiture in history was the 1984 U.S. Department of Justice-mandated breakup of the Bell System
Bell System

The Bell System refers to popular names used to described a group of companies that operated initial telephone services in the US. In 1877, the American Bell Telephone Company, named after Alexander Graham Bell, opened the first telephone exchange in New Haven, CT....
 into AT&T
AT&T

AT&T Inc. is the largest US provider of both local and long distance telephone services, and Digital subscriber line Internet access. AT&T is the second largest provider of wireless service in the United States, with over 77 million wireless customers, and more than 150 million total customers....
 and the seven Baby Bells.

External links

  • - Ans academic research institute on mergers & acquisitions, incl. divestments


See also

  • Consolidation (business)
    Consolidation (business)

    Consolidation or amalgamation is the act of merging many things into one. In business, it often refers to the mergers or acquisitions of many smaller companies into much larger ones....
  • Corporate social responsibility
    Corporate social responsibility

    Corporate Social Responsibility , also known as corporate responsibility, corporate citizenship, responsible business and corporate social opportunity is a form of corporate self-regulation integrated into a business model....
  • Demerger
    Demerger

    Demerger is the converse of a Mergers and acquisitions. It describes a form of restructure in which shareholders or unitholders in the parent company gain direct ownership in a subsidiary ....
  • Divestment campaign
  • Financial economics
    Financial economics

    Financial economics is the branch of economics concerned with "the allocation and deployment of economic resources, both spatially and across time, in an uncertain environment" ....
  • Tax resistance
    Tax resistance

    Tax resistance is the refusal to willingly pay a tax because of opposition to the institution that is imposing the tax, or to some of that institution?s policies....