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  • What Does Disinvestment Mean

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    Disinvestment refers to the action of an organization or government selling or liquidating an asset or subsidiary. It also means a reduction in capital expenditure or the decision of a company not to replenish depleted capital goods. A company or government will divest assets as a strategic move to put the proceeds from the divestiture to better use and achieve a higher return on investment. A company may also not replace capital goods or continue investing in certain assets unless it feels it is receiving a sufficient return to justify the investment and may instead invest in more profitable assets.

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    Disinvestment refers to the action of an organization or government selling or liquidating an asset or subsidiary. It also means a reduction in capital expenditure or the decision of a company not to replenish depleted capital goods. A company or government will divest assets as a strategic move to put the proceeds from the divestiture to better use and achieve a higher return on investment. A company may also not replace capital goods or continue investing in certain assets unless it feels it is receiving a sufficient return to justify the investment and may instead invest in more profitable assets.

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    9 views1 page

    What Does Disinvestment Mean

    Uploaded by

    Mehul Dhorda
    Disinvestment refers to the action of an organization or government selling or liquidating an asset or subsidiary. It also means a reduction in capital expenditure or the decision of a company not to replenish depleted capital goods. A company or government will divest assets as a strategic move to put the proceeds from the divestiture to better use and achieve a higher return on investment. A company may also not replace capital goods or continue investing in certain assets unless it feels it is receiving a sufficient return to justify the investment and may instead invest in more profitable assets.

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    What Does Disinvestment Mean?

    1. The action of an organization or government selling or liquidating an asset or subsidiary. Also


    known as "divestiture".

    2. A reduction in capital expenditure, or the decision of a company not to replenish depleted capital


    goods.

    Investopedia explains Disinvestment


    1. A company or government organization will divest an asset or subsidiary as a strategic move for
    the company, planning to put the proceeds from the divestiture to better use that garners a higher
    return on investment.

    2. A company will likely not replace capital goods or continue to invest in certain assets unless it feels
    it is receiving a return that justifies the investment. If there is a better place to invest, they may deplete
    certain capital goods and invest in other more profitable assets.

    http://books.google.co.in/books?
    id=IltxXkWDha4C&dq=disinvestment+in+india&printsec=frontcover&source=bl&ots=xQssG7m1tp&s
    ig=pExyz-
    NssCD_du8qvbjEP06cul4&hl=en&ei=FZMoS_2mDdGgkQW8tqiDDQ&sa=X&oi=book_result&ct=result
    &resnum=9&ved=0CCEQ6AEwCA#

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