
Divestment
Divestment is the process of selling off investments and assets. It involves reducing or eliminating ownership stakes in certain companies, industries, or regions.
In the context of socially responsible investing, divestment often refers to the act of selling or avoiding investments in companies that are involved in activities that are deemed to be socially or environmentally harmful. For example, some investors may choose to divest from companies that are involved in the production of fossil fuels, tobacco, or firearms, among other industries.
Divestment can be thought of as the opposite of investment. Whereas investment involves the purchase of assets, divestment involves the sale of assets. This can be done for a variety of reasons, such as to raise capital, simplify a company's operations, or to exit an unprofitable or non-core business.