diversification
Americannoun
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the act or process of diversifying; state of being diversified.
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the act or practice of manufacturing a variety of products, investing in a variety of securities, selling a variety of merchandise, etc., so that a failure in or an economic slump affecting one of them will not be disastrous.
noun
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commerce the practice of varying products, operations, etc, in order to spread risk, expand, exploit spare capacity, etc
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(in regional planning policies) the attempt to provide regions with an adequate variety of industries
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the act of diversifying
Other Word Forms
Etymology
Origin of diversification
First recorded in 1595–1605, diversification is from the Medieval Latin word dīversificātiōn- (stem of dīversificātiō ). See diversify, -fication
Explanation
Diversification is the opposite of sameness. Use diversification to describe the goal achieved by a store that started with deli sandwiches and now offers gourmet coffee, muffins, soups, and salads. If a group seeks diversification, it wants to attract people of different ages from various backgrounds. If your financial adviser tells you that your stock portfolio needs diversification, this means you need to have stocks from a variety of companies and different industries. In other words, things should be more diverse. Use that to remember how to pronounce the word: Say diverse, then add if-ick-a-shun.
Vocabulary lists containing diversification
"The Origin of Species by Natural Selection" by Charles Darwin: Essential Words
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Personal Finance and Financial Literacy - High School
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Out of the Dust
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Example Sentences
Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.
Diversification can introduce risk if an investment-grade bond portfolio adds lower-quality bonds like high yield.
From The Wall Street Journal • May 3, 2026
Diversification helps a portfolio weather volatility because if one area of the market tanks, you are likely exposed to another area that will hold steady or even rise.
From Barron's • Apr. 8, 2026
Diversification, taxes, liquidity, long-term care and estate planning all deserve your attention.
From MarketWatch • Oct. 27, 2025
"Diversification" refers to the practice of investing in multiple, maybe even competing, assets.
From Salon • Dec. 24, 2024
The Diversification of Crops.—No less significant was the concurrent diversification of crops.
From History of the United States by Beard, Charles A. (Charles Austin)
Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023
Idioms from The American Heritage® Idioms Dictionary copyright © 2002, 2001, 1995 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company.
