Divest
The reduction of a financial asset
Real World Example
During the period of Conservatism from 1980 to 1993, divestment often referred to the process of reducing investments in certain industries or countries to promote political or social change. One notable example was the divestment from South African companies to protest apartheid, the system of racial segregation. This movement aimed to pressure the South African government to end discriminatory policies, highlighting how financial decisions could drive political reform. Today, divestment remains important as people and organizations use it to address issues like climate change by pulling investments from fossil fuels. For example, when universities or pension funds divest from oil companies, it encourages the growth of renewable energy sources, impacting both the environment and the economy.