diversification

noun

di·​ver·​si·​fi·​ca·​tion də-ˌvər-sə-fə-ˈkā-shən 

dī-

1

: the act or process of diversifying something or of becoming diversified : an increase in the variety or diversity of something

Between the appearance of complex cells 2.1 billion to 1.6 billion years ago and the explosive diversification of multicellular animals some 800 million years ago, not much happens in the fossil record.

—Carolyn Gramling

2

a

: the act or practice of spreading investments among a variety of securities or classes of securities

I've emphasized bond mutual funds because they're so useful for investors of average means. You get diversification (because the fund owns many types of bonds) and liquidity (you can cash out, at the market price, whenever you want).

—Jane Bryant Quinn

b

: the act or policy of increasing the variety of a company's products

And it envisions a diversification into products such as clothing and electronics, which Nakasone hopes will attract more customers outside the busy holiday season.

—Karl Taro Greenfeld

Examples of diversification in a Sentence

Recent Examples on the Web

Reducing risk via diversification and a solid business network The Moselle lock accident shows once again how a seemingly minor incident can affect the risk of production downtime. —Sin To, Forbes, 16 Dec. 2024

Her new group will focus on demand diversification and the client-wide adoption of digital partnerships. —Dade Hayes, Deadline, 10 Dec. 2024

David Paul Morris | Bloomberg | Getty Images Adding dividend-paying stocks to a portfolio helps enhance total return while ensuring income and diversification. —Tipranks.com Staff, CNBC, 8 Dec. 2024

Global powers had already started discussing the diversification of the cotton industry, especially as the U.S. slipped further and further toward conflict. —Shoshi Parks, Smithsonian Magazine, 5 Dec. 2024

Word History

Etymology

borrowed from Middle French & Medieval Latin; Middle French diversificacion, diversification, borrowed from Medieval Latin dīversificātiōn-, dīversificātiō "differentiation, variation," from dīversificāre "to differentiate, diversify" + Latin -tiōn- -tiō, suffix of verbal action

First Known Use

1603, in the meaning defined at sense 1