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

Crofting requires diversification, hard work, and flexibility, and some crofters now welcome a few visitors who learn about the traditional and present-day practice of subsistence farming on the islands. —Sarah Moss, Travel + Leisure, 11 Jan. 2026

From a portfolio diversification standpoint, financial advisors typically recommend allocating 5% to 10% of your portfolio to precious metals. —Angelica Leicht, CBS News, 9 Jan. 2026

As far as retail channels go, diversification and embracing social commerce have been key. —Noor Lobad, Footwear News, 8 Jan. 2026

Anything short of that risks disappointing investors who already have concerns about corporate earnings growth amid lower oil prices, government spending cuts, and uncertainty around investment in key economic diversification projects. —Matthew Martin, semafor.com, 7 Jan. 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