In finance and economics, divestment or divestiture is the reduction of some kind of asset for either financial goals or ethical objectives. The field of finance refers to the concepts of Time, Money and Risk and how they are interrelated Economics is the social science that studies the production distribution, and consumption of goods and services. In Business and Accounting, assets are everything owned by a person or company (all tangible and intangible property that can be converted into cash. A divestment is the opposite of an investment. Investment or investing is a term with several closely-related meanings in Business management, Finance and Economics, related to saving
Often the term is used as a means to grow financially in which a company sells off a business unit in order to focus their resources on a market it judges to be more profitable, or promising. Sometimes, such an action can be a spin-off. A spin-off (or spinoff) is a new Organization or Entity formed by a split from a larger one such as a Television series based on a pre-existing (For the United States); Divestment of certain parts of a company can occur when required by the Federal Trade Commission before a merger with another firm is approved. The Federal Trade Commission ( FTC) is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act A company can divest assets to wholly owned subsidiaries.
The largest, and likely most-famous, corporate divestiture in history was the 1984 U.S. Department of Justice-mandated breakup of the Bell System into AT&T and the seven Baby Bells. For animal rights group see Justice Department (JD The United States Department of Justice ( DOJ) is a Cabinet department The break up of AT&T was initiated in 1974 by the US Department of Justice antitrust suit against the telephone Monopoly. The Bell System which was named for Alexander Graham Bell, the technologist popularly credited with the invention of the Telephone, was a Trademark and Before proposing a merge request please see Talk and see if the merger you propose has recently been made and