diversification

noun

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
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American trade associations, too, found fault with the duty hike, both because of its regressive impact on diversification efforts and its potential impact on inflation-weary American consumers. Kate Nishimura, Footwear News, 17 July 2026 Start by building a comprehensive plan that addresses taxes, diversification and cash flow. Expert Panel®, Forbes.com, 17 July 2026 As part of the diversification efforts, the platform has expanded its portfolio of live programming over the years, including adding NFL games and streaming Major League Baseball’s opening day game. Los Angeles Times, 16 July 2026 Soccer is one of the most popular sports in Saudi Arabia and the government has been pouring money into it as part of efforts to promote economic diversification, healthy lifestyles, and boost its international reputation. Matthew Martin, semafor.com, 15 July 2026 See All Example Sentences for diversification

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

Time Traveler
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 21 Jul. 2026.

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