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 report identifies a diversification in the strains of medical cannabis dispensed throughout 2024. —Dario Sabaghi, Forbes, 24 Jan. 2025

Share [Findings] A period of global coolness 4,200 years ago accelerated the diversification of japonica rice. —Rafil Kroll-Zaidi, Harper's Magazine, 22 Jan. 2025

The diversification of the LAFD and other departments followed consent decrees that began in the 1970s and ‘80s. —Sonja Sharp, Los Angeles Times, 18 Jan. 2025

The 2025 outlook for the unit, released Monday, included a model portfolio for moderate risk investors that recommended staying overweight U.S. equities, while trimming exposure to foreign stocks to add some diversification through alternatives, like private equity. —Jesse Pound, CNBC, 13 Jan. 2025

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