Legal Definitions - disinvestment

Definition: Disinvestment refers to the consumption of capital or the withdrawal of investments, especially on political grounds. It can also be called divestment.

1. A company may disinvest in a particular project if it is not generating enough profits or if it is deemed too risky.

2. Some investors may choose to disinvest from companies that engage in unethical practices, such as those that harm the environment or exploit workers.

3. In the 1980s, many countries disinvested from South Africa due to its apartheid policies.

These examples illustrate how disinvestment can occur for various reasons, such as financial considerations or ethical concerns. It involves withdrawing investments or resources from a particular entity or project.