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

The ongoing diversification of the American populace ensures that Latin American rhythms, jazz subgenres and electronic innovations will continue to redefine what the nation will sound like moving forward. — Ted Olson, The Conversation, 2 July 2026

As domestic priorities evolve, those same countries may increasingly pursue investment diversification. — Wesley Alexander Hill, Forbes.com, 1 July 2026

Nearly all central banks surveyed think the renminbi provides diversification, while two-thirds said the euro had become more attractive for use in global trade, up from 43% last year. — Hanna Ziady, CNN Money, 30 June 2026

After decades of reliance on bauxite and mining, diversification toward tourism and agriculture is imperative. — Panorama Media Ltd, Miami Herald, 29 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