divestiture
UK: daɪˈvɛstɪtʃə | US: daɪˈvɛstɪtʃər
n. the act of selling off assets or subsidiaries, often to comply with regulations or streamline operations
n. the legal or formal relinquishment of ownership or control over property
divestiture = di<apart> + vest<clothe> + iture<noun suffix>
- di<apart>: Prefix from Latin dis-, meaning "apart" or "away."
- vest<clothe>: Root from Latin vestire ("to clothe"), metaphorically extended to mean "to invest" (as in resources) and later "to divest" (remove investment).
- iture<noun suffix>: Latin-derived suffix forming nouns denoting actions or results (cf. investment).
Etymology Origin:
The word traces back to Latin divestire ("to unclothe"), combining dis- (separation) + vestire (clothing). In finance, "divestiture" emerged in the 20th century as a metaphorical extension—stripping away assets like removing garments. The suffix -iture parallels -ment (e.g., investment), emphasizing the action’s result.
The company announced the divestiture of its underperforming division to focus on core markets.
Regulatory authorities required the divestiture of certain assets to prevent monopolistic practices.
The divestiture process was completed within six months, yielding significant capital.
Shareholders debated whether the divestiture would enhance long-term profitability.
Historical divestitures in the industry often preceded major restructuring.