di·​ver·​si·​fi·​ca·​tion | \ də-ˌvər-sə-fə-ˈkā-shən How to pronounce diversification (audio) , dī- \

Definition of diversification

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
2a : 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

First Known Use of diversification

1603, in the meaning defined at sense 1

History and Etymology for diversification

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

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The first known use of diversification was in 1603

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Cite this Entry

“Diversification.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/diversification. Accessed 2 Jul. 2022.

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More from Merriam-Webster on diversification

Nglish: Translation of diversification for Spanish Speakers

Britannica English: Translation of diversification for Arabic Speakers


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