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

What’s safe to say is that broad diversification across asset classes has helped stabilize long-term investment returns. —Jeff Sommer, New York Times, 19 Apr. 2024

Nevertheless, the basic argument in favor of diversification still holds, and an uncomplicated 60/40 strategy can be a good way to achieve it. —The Arizona Republic, 31 Mar. 2024

In celebration of George Washington’s birthday, delve into the personal financial wisdom exemplified by the first president of the U.S. Unpacking his approach to personal finance and wealth management offers timeless lessons on budgeting, investing, debt management, and income diversification. —True Tamplin, Forbes, 22 Feb. 2024

Robinhood makes diversification more accessible with Fractional Shares, enabling users to invest in fractions for as little as $1. —Stephanie Tsai, The Hollywood Reporter, 8 Apr. 2024

Starting in 2020 in emails and texts to local businesses, civic groups and journalists, LS2 pushed a narrative about Saudi Arabia’s benevolent role as a U.S. trade partner and job creator, while embracing the notions of gender equity and diversification at home. —Kate Kelly, New York Times, 7 Apr. 2024

The agency now focuses on diversification, a stable cash yield and inflation protection, the statement said. —Ishani Desai, Sacramento Bee, 3 Apr. 2024

This diversification helps determine what messaging resonates with your target audience, optimizing your video marketing efforts. —Xinyue 'coco' Chen, Forbes, 27 Feb. 2024

Share [Findings] A period of global coolness 4,200 years ago accelerated the diversification of japonica rice. —Rafil Kroll-Zaidi, Harper's Magazine, 27 Mar. 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