Investor Glossary-divestitureInvestor Glossary-divestitureInvestor Glossary-divestitureInvestor Glossary-divestitureInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Divestiture

The HTML to link to this page
 

Divestiture is the sale or disposition of a business by a company and may occur for various reasons. Sometimes a divestiture results simply from a company's desire to rid themselves of a poorly performing business. In other cases, a company will decide a business no longer fits its strategic objectives and is thus a suitable candidate for divestiture. More positively, a divestiture may result from a company's decision that it can maximize shareholder value from a successful business by letting it stand alone (although in this case "spinoff" is more commonly used than divestiture). A divestiture may also result from a court order, such as the divestiture of ATT of its local operating subsidiaries in the 1980s. A corporate divestiture often requires the services of an investment bank to assure the best price is achieved for the asset. From an accounting viewpoint, a divestiture may be categorized as discontinued operations, which requires special accounting treatment.



Rate this divestiture definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: 1035 exchange, phantom income, command economy, diluted share, LIBOR, per diem, ex-dividend date, debt service coverage, cancelled check, Zero Cost Collar, dividends payable, implied volatility, 1031 exchange, labor relations, 144a, covered put, irrevocable trust, class C shares, quality assurance, liquidity ratio, annual return, deferred tax, margin rate, reverse mortgage, deferred revenue, inflation, stock market close, limit order, retained earnings, VIX, current ratio, FTSE, Key Rate Duration, balance sheet, APR, required rate of return, stock split, FICO score, 401a, minority interest, open position, real GDP, option premium, wholly-owned subsidiary, risk management, ex-dividend, in escrow, average price per share, EBITDA


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use