What does divest mean?
Divest is a formal verb meaning to strip something away — whether that means selling off a company's assets or depriving a person of rights, power, or property. Its most prominent modern use is financial: corporations and institutions divest when they sell subsidiaries, shares, or entire business lines, often under regulatory pressure or in response to ethical campaigns such as fossil-fuel divestment. An older, still-current sense pairs the word with "of," as in "the king was divested of his authority," where it carries connotations of loss and humiliation. The verb traces back to the Latin vestis (garment), so its original sense was literally to undress or remove clothing — a figurative root that survives in the idea of stripping away layers of ownership or privilege. Related noun forms include divestment and divestiture. Divest is at home in news reports, legal writing, and corporate announcements rather than casual conversation.
verbTo divest is to strip someone or something of power, rights, possessions, or status, or (with "of") to rid oneself of something. In modern business usage it commonly means to sell off a company, subsidiary, or asset.
- To sell off or dispose of a business interest, investment, or asset.
- To deprive someone of power, rights, rank, or property (usually followed by "of").
- To free oneself of something; to rid (archaic or formal).
"The conglomerate agreed to divest several of its smaller subsidiaries to satisfy antitrust regulators."
"Under pressure from shareholders, the university pledged to divest its holdings in fossil-fuel companies."
"The committee voted to divest the general of his command after the scandal."
"Divest" literally means to undress — it comes from the Latin for stripping off garments, which is why activists still use it to strip companies of their dirty investments.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of divest
Divest derives from the Latin vestire (to clothe), built on vestis (garment); with the negative prefix di- it originally meant to unclothe or undress. It entered English in the early 17th century, first used literally before extending figuratively to stripping people of titles, powers, or possessions. The commercial sense of selling off assets developed later and now dominates usage. It shares its Latin root with words such as invest, vestment, and divestiture.
Related word forms
How divest is actually used
"Divest" is largely formal and frequent in financial, political, and legal registers. The sense "deprive of" normally requires the preposition "of" ("divested of his title"). In business journalism, the noun forms "divestment" (more common in British English) and "divestiture" (more common in American English) are standard.
Easily confused with divest
"Devest" is a rare legal term meaning to take away an estate or right, whereas "divest" is the common word for stripping away rights, assets, or clothing — in most contexts "divest" is the correct choice.