diversification

noun

di·​ver·​si·​fi·​ca·​tion də-ˌvər-sə-fə-ˈkā-shən How to pronounce diversification (audio)
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
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But for Arista, much of the diversification in its deployments is coming out of necessity. Kristina Partsinevelos,ari Levy, CNBC, 13 Feb. 2026 Jacob later told The Hollywood Reporter that international titles are now part of his company’s diversification strategy to offset the highs and lows of Hollywood box office that has long included an increasing array of out-of-home entertainment locations to drive incremental revenues. Etan Vlessing, HollywoodReporter, 11 Feb. 2026 Pingree began assembling the holdings in the mid-1800s after correctly anticipating the decline of Salem’s maritime economy—a diversification play that still shapes the landscape of northern New England. Abby Montanez, Robb Report, 10 Feb. 2026 The ratings agency also expects foreign direct investment into the region to remain weak, meaning the onus on paying for economic diversification will rest firmly with Gulf governments themselves. Dominic Dudley, semafor.com, 10 Feb. 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 16 Feb. 2026.

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