Divestment Definition, Objectives, Methods, & Impact For Investors

ACTIVELY SHARE — Divestment is one of the things that investors must understand. Here’s the explanation.

Maybe you’ve never heard of this, but investing has the opposite, namely divestment.

Among investors, this divestment activity is very common.

There are various reasons behind it. But, what exactly is divestment? What is the purpose of investors doing this? And when should you divest?

Understanding Divestment Strategy

The divestment strategy is the opposite of investing. More fully, divestment is an activity to reduce some amount of assets in order to obtain greater profits in the future.

In this case, it does not mean that divestment is a detrimental thing. Because the purpose of divestment is to get a higher profit than before.

In simple terms, an example of divestment is adding up a number of lots of shares when the market price is high. This is done so that investors get bigger profits.

Thus, it can be concluded that the divestment strategy is a number of strategic steps taken to reduce assets in order to obtain greater profits.

Purpose Of Divestment

As discussed earlier, the main objective of the divestment strategy is to maximize profits. However, that’s not all.

Trending in Investments

Leave a Comment