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

Industry analysts point out that the influx of major tech issuers provides European bond markets with high quality investment grade paper while expanding portfolio diversification options for investors. — CNBC, 3 Nov. 2026

Sodium-ion could become increasingly useful where cold-weather performance, material availability and supply-chain diversification carry greater value. — Kaif Shaikh, Interesting Engineering, 1 Nov. 2026

Carolyn Kousky, the founder of an organization called Insurance for Good and a contributing economist at the Environmental Defense Fund, said the first challenge the insurance model would face is a lack of diversification. — Stephen Hobbs, Sacbee.com, 30 Oct. 2026

The textile industry has been increasingly investing in Vietnam amid diversification pushes out from China. — Sarah Jones, Footwear News, 28 Oct. 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