English Reference

Word

divest

Phoneticsdi·vest, stress on the second syllable

US/daɪˈvɛst/

UK/daɪvˈɛst/

Definition

v. to sell off a company's assets or shares in another company. You do this to reduce risk or to follow a specific investment strategy.

v. to sell off an asset, such as a company or shares, as part of a strategic or financial decision. Often used in the context of corporate finance or investment management.

Examples

“The company decided to divest its shares in the failing bank.”

“To reduce its environmental impact, the firm chose to divest from all fossil fuel industries over the next five years.”

“The board of directors voted to divest from the manufacturing division, citing the high costs of modernization and the lack of a clear long-term growth strategy.”

Examples

simple

“The company decided to divest its shares in the failing bank.”

contextual

“To reduce its environmental impact, the firm chose to divest from all fossil fuel industries over the next five years.”

complex

“The board of directors voted to divest from the manufacturing division, citing the high costs of modernization and the lack of a clear long-term growth strategy.”

Real-World Examples

“Each month, you check your streaming holdings and see if you’re about to be charged even more, and whether you need to pick one to divest (cancel, whether for good or for now).”
The Guardian 24 Sept 2026
“In 2024, former President Biden pushed for TikTok to be either banned, or have the company divest its US operations.”
BBC News 21 Aug 2026

Etymology

Alteration of devest, from Middle French devester (“strip of possessions”), from Old French desvestir, from des- (“dis-”) + vestir (“to clothe”).

Etymology adapted from Wiktionary, available under CC BY-SA 4.0.

Word family

VERB

divest(C1)

Domain

Finance

This entry

Exam level
CambridgeCambridgeCambridge English QualificationsThe exam suite from Cambridge University Press & Assessment, from A1 Movers up to C2 Proficiency. The benchmark names double as CEFR labels.C1 AdvancedIELTSIELTSInternational English Language Testing SystemThe 0–9 band test co-owned by the British Council, IDP, and Cambridge. Used for university entry, work, and migration.7.0–8.0TOEFL iBTTOEFL iBTTest of English as a Foreign Language, Internet-Based TestETS's academic English test, the standard route for US university admissions. Scored 0–120, with a 1–6 scale since 2026.1–6 scale: 5.0–5.595–113TOEICTOEICTest of English for International CommunicationETS's workplace English test, big in Japan and Korea. Listening & Reading scores 10–990 and tops out at C1.945–990
Frequency
Occasional
Level
C1 · Advanced
Updated

QR code

englishreference.com/q/divest

English Reference