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

Canada dials up trade diversification efforts As the US hosts G20 trade ministers in Wisconsin, Canada is taking the opportunity to strengthen its ties to other countries. — semafor.com, 2 Oct. 2026

Prudence, in standard investing wisdom, means diversification across asset classes while rebalancing along the way to keep exposures in line and risks well-distributed. — Michael Santoli, CNBC, 29 Sep. 2026

Goddard has played a key role in the production company’s diversification, finding new ways to monetize Argonon’s 5,800-hour catalog across brand partnerships, sponsorships, FAST channels, digital and podcasts. — Jesse Whittock, Deadline, 23 Sep. 2026

This simply highlights that the potential diversification benefit comes with different characteristics, particularly around liquidity and transparency. — Artem Milinchuk, Forbes.com, 18 Sep. 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