Simple Definition of divestiture
finance : the act of selling stock, property, etc., because of a government order
Full Definition of divestiture
1 : the act of divesting
2 : the compulsory transfer of title or disposal of interests (as stock in a corporation) upon government order
Examples of divestiture in a sentence
Divestitures are used to break up monopolies.
Before divestiture, the telephone company monopolized the state.
Origin and Etymology of divestiture
divest + -iture (as in investiture)
First Known Use: 1601
Legal Definition of divestiture
1 : the sale or transfer of title to a property (as an operating division) under court order (as in bankruptcy)
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
Learn More about divestiture
Britannica English: Translation of divestiture for Arabic speakers
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