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

Central bank demand, geopolitical risk, high government debt, currency concerns, de-dollarization, and the desire for portfolio diversification all remain important factors. —Aly J Yale, CBS News, 11 June 2026

Despite the evidence of diversification’s growing traction, McKinsey data shows that for both American and European brands, nearshoring’s share of production has remained fairly flat in recent years. —Sj Studio, Footwear News, 11 June 2026

My focus is diversification—across media, search, AI indexing and offline networking—to ensure resilience, stable visibility and independence from unpredictable shifts. —Expert Panel®, Forbes.com, 11 June 2026

Splitting up a portfolio this way can ensure diversification and help hold portfolio management teams accountable by giving them clear benchmarks to beat. —Bloomberg, Mercury News, 11 June 2026

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

Rhymes for diversification

• acclimatisation
• acclimatization
• acidification
• actualization
• annualization
• autocorrelation
• autoregulation
• beatification
• beneficiation
• biodegradation
• biotransformation
• bureaucratization