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 museum and King Salman Park itself are part of the broader Vision 2030 program initiated by the Saudi government in 2016 in an effort to reduce the country’s economic dependence on oil production and increase social and cultural diversification. —News Desk, Artforum, 12 July 2024

The State Fair's yearslong diversification of food vendors is continuing in 2024. —Nick Halter, Axios, 9 July 2024

While the diversification is being artificially accelerated by these factors, the fact is that more than 2 billion people are yet to be globalized as new and accessible consumers and laborers. —Marco Quiroz-Gutierrez, Fortune, 2 July 2024

However, a fund might own dozens, hundreds or even thousands of stocks or bonds, and this diversification can greatly mitigate some risks. —Russ Wiles, The Arizona Republic, 23 June 2024

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