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

Drastic ecosystem changes took place during the Late Triassic, which led to a rise in diversification in several animal groups, including dinosaurs, early mammal relatives and a group that includes crocodiles, according to the paper. —Julia Jacobo, ABC News, 18 Oct. 2025

Government investment into cultural initiatives, especially in Saudi Arabia, which is in the throes of its economic diversification plan, Vision 2030, is also propelling new talents onto the international scene. —Sofia Celeste, Footwear News, 17 Oct. 2025

In an interview with Fortune, cofounder and CEO Renaud Laplanche explained that Upgrade managed to thrive during a broader reckoning for neobanks because of product diversification and a focus on loans, which can offer a far greater margin than transaction payments. —Jeff John Roberts, Fortune, 16 Oct. 2025

Expanding the curriculum Kim opened the second semester with a lecture on shifting global market dynamics, consumer behavior, production diversification, innovation strategy, traceability systems and the tightening environmental, social and governance (ESG) regulatory landscape. —Sj Studio, Sourcing Journal, 16 Oct. 2025

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