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divestiture

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noun di·ves·ti·ture \dī-ˈves-tə-ˌchu̇r, -chər, də-, chiefly Southern -t(y)u̇(ə)r\

Simple Definition of divestiture

  • finance : the act of selling stock, property, etc., because of a government order

Source: Merriam-Webster's Learner's Dictionary

Full Definition of divestiture

  1. 1 :  the act of divesting

  2. 2 :  the compulsory transfer of title or disposal of interests (as stock in a corporation) upon government order

Examples of divestiture in a sentence

  1. Divestitures are used to break up monopolies.

  2. Before divestiture, the telephone company monopolized the state.



Origin of divestiture

divest + -iture (as in investiture)


First Known Use: 1601


Law Dictionary

divestiture

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noun di·ves·ti·ture \dī-ˈves-ti-ˌchu̇r, də-, -chər\

Legal Definition of divestiture

  1. 1 :  the sale or transfer of title to a property (as an operating division) under court order (as in bankruptcy)

  2. 2 :  the sale of an asset (as a business division) that is unprofitable, does not enhance a corporate restructuring, or is felt to be morally reprehensible




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