What context can I use each word in?
Learn when and how to use these words with these examples!
divestment
Example
The company announced its divestment from fossil fuels to align with its sustainability goals. [divestment: noun]
Example
The university faced pressure from students to divest from companies involved in human rights violations. [divest: verb]
liquidation
Example
The company went into liquidation after failing to pay its debts. [liquidation: noun]
Example
The investor decided to liquidate their portfolio to free up cash for other investments. [liquidate: verb]
Good things to know
Which word is more common?
Liquidation is more commonly used than divestment in everyday language, especially in the context of business and finance. Divestment is a more specialized term that is often used in the context of socially responsible investing or ethical considerations.
What’s the difference in the tone of formality between divestment and liquidation?
Both divestment and liquidation are formal terms that are typically used in business and finance contexts. However, liquidation may be considered more formal due to its association with bankruptcy and financial distress.
