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Divestification is the process of reducing or eliminating investments in certain assets, sectors, or companies, often for ethical, financial, or strategic reasons. It contrasts with diversification, which involves spreading investments across various assets to minimize risk. Organizations or investors may divest from industries like fossil fuels, tobacco, or firearms to align their portfolios with social values or sustainability goals. Ultimately, divestification aims to redirect resources toward more favorable or responsible opportunities.
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