diversification

American  

[dih-vur-suh-fi-key-shuhn, dahy-] / dɪˌvɜr sə fɪˈkeɪ ʃən, daɪ- /

noun

1. the act or process of diversifying; state of being diversified. diversify.

2. 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.

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Other Word Forms

• nondiversification noun
• overdiversification noun

Etymology

Origin of diversification

First recorded in 1595–1605, diversification is from the Medieval Latin word dīversificātiōn- (stem of dīversificātiō ). See diversify, -fication

Example Sentences

This strategy also provides diversification for LPs whose portfolios consist of venture firms focused more on hot spots like Massachusetts and California, Dunlop said.

From The Wall Street Journal

So the strategy has worked out well so far, with a discounted valuation to the S&P 500, as well as diversification away from that large-cap U.S. benchmark.

From MarketWatch

The point is to be prudent, but diversification also might help you beat the pros at a time like this.

From The Wall Street Journal

A diversification among tech plays has also started to play out as companies unveil new AI tools that threaten touch competition for some companies.

From Barron's

Precious metals have captivated people for centuries and continue to play a role in the modern world—as portfolio diversification, as a hedge against inflation, as a haven during tumultuous times and for industrial uses.

From The Wall Street Journal

Related Words

• diversity