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

That same month, the Roundhill HALO ETF, which focuses on high-asset, low-obsolescence stocks as a diversification strategy from AI, purchased shares of Casey’s, marking the fund’s sole convenience store investment. — Norah Rami, Fortune, 14 Aug. 2026

Instead, Alghashian described the agreement as part of Saudi Arabia’s longer-term diversification of strategic relationships. — Efrat Lachter, FOXNews.com, 12 Aug. 2026

Plus, Cardinal offers us some nice diversification away from technology, complementing our exposure to drugmakers Johnson & Johnson and Eli Lilly within the healthcare industry. — Zev Fima, CNBC, 11 Aug. 2026

How criminal networks diversified Criminal diversification did not happen all at once. — Robert Muggah, The Conversation, 10 Aug. 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