What is Disinvestment?
5paisa Research Team
Last Updated: 19 Sep, 2024 03:36 PM IST

Content
- Introduction
- What is Disinvestment?
- How does Disinvestment work?
- Example of Disinvestment
- Causes of Disinvestment
- Why do companies disinvest?
- What does disinvestment mean for our economy?
- Wrapping Up
Introduction
Disinvestment is the opposite of investment. Disinvestment is an intentional effort to reduce, usually by force, something that was previously invested in. For example, disinvestment happens when a country's government tries to undermine or remove foreign businesses from its country.
Source : Business Today
Even though disinvestment is often political in nature, it can also be financial. For example, some countries have disinvested from their own companies by selling off their shares. And on a smaller scale, many investors choose to disinvest from companies that they don't think are doing well.
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