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Divestiture

• The selling of some of a firm's assets for various strategic motives.

 
 Embedded terms in definition
 Assets
 
 Referenced Terms
 Spin off: A form of Divestiture in which an operating unit becomes an independent company by issuing shares in it on a pro rata basis to the parent company's shareholders.Is a company or division which is separated from the parent. Here, the parent's shareholders receive pro rata ownership shares in the newly free standing organization.A company can create an independent company from an existing part of the company by selling or distributing new shares in the so-called spin-off.

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