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A reduction in capital investment reflected by a decrease in capital goods and a company's decision not to replace depleted capital goods.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The sale or elimination of a department, subsidiary, or any other major investment. Disinvestment is most common when a company must raise capital quickly to finance new operations or pay a certain liability, or when it determines that the investment is unlikely to become or remain profitable in the future.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Divestiture, liquidation, or sale of a segment of a firm. Disinvestment may occur for a number of reasons including a poor outlook for a particular line of business or a firm's need to raise additional capital for other more promising segments of its business.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
- 1a decrease in a country's CAPITAL STOCK that occurs when there is insufficient new INVESTMENT to cover CAPITAL CONSUMPTION/DEPRECIATION
(capital lost because of wear and tear).
- the sale or closure by a firm of part of its business. See DIVESTMENT.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005