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

In a rare interview last year with French financial daily Les Echos, Emmanuel Besnier said the commodity is the company’s backbone, with diversification focused on expanding geographically and into related products like yogurt. —Tara Patel, Fortune, 5 Feb. 2026

The bottom line Even at today's prices, the combination of industrial demand, portfolio diversification benefits and manageable entry price makes 10-ounce silver bars a practical choice for investors looking to add physical precious metals to their holdings. —Angelica Leicht, CBS News, 4 Feb. 2026

But land does offer a hedge against inflation, diversification against economic upheavals, and provides a certainty that isn’t available with assets whose value can evaporate in a short time span, like Washington Mutual or Enron. —Aldo Svaldi, Denver Post, 1 Feb. 2026

This serves as a useful reminder that leadership rotates, and diversification still matters. —Bruce Helmer, Twin Cities, 31 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