diversification

American  

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

noun

• diversifications
  plural

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

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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diversification British  

/ daɪˌvɜːsɪfɪˈkeɪʃən /

noun

1. commerce the practice of varying products, operations, etc, in order to spread risk, expand, exploit spare capacity, etc

2. (in regional planning policies) the attempt to provide regions with an adequate variety of industries

3. the act of diversifying

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Other Word Forms

Derived Forms

• nondiversification
  noun
• overdiversification
  noun

Inflected Forms

Nouns

• diversifications
  plural

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.

Example Sentences

See Examples For:

diversification diversifications

Some private funds have provided outstanding performance and valuable diversification.

From The Wall Street Journal ● Aug. 14, 2026

Among the highlights for Wall Street analysts: a swelling backlog, growing customer diversification and rising prices.

From MarketWatch ● Aug. 12, 2026

Among them were the archosauriforms, which underwent extensive diversification during the Triassic.

From Science Daily ● Aug. 10, 2026

Owning a large-growth or large-value index—instead of a fund that holds the entire market—reduces your diversification and raises the risk that a handful of stocks can create wacky short-term results.

From The Wall Street Journal ● Aug. 7, 2026

My father has always stressed the importance of diversification, and I like to think that I’ve acquired a diversified portfolio from my hydration business—a portfolio I plan to turn for a profit on eBay.

From "Dry" by Neal Shusterman and Jarrod Shusterman

Dr Tian said, "The role of non-coding RNAs in phenotypic diversification is largely understudied. This study prompts further investigations on how non-coding RNAs such as miRNAs can contribute to phenotypic diversifications in organisms."

From Science Daily ● Dec. 6, 2024

“We have fought for economic diversifications for so long.”

From Washington Times ● Aug. 22, 2020

The result is a history of life during this period, the early Palaeozoic era, that can pinpoint the rise and fall of species during diversifications and mass extinctions to within about 26,000 years.

From Nature ● Jan. 15, 2020

Chuck Robbins, who succeeded Mr Chambers in July 2015, has two decades of experience selling Cisco gear and seems more comfortable talking about its core business than about diversifications.

From Economist ● Jun. 22, 2017

A comparison of these changes in individuals would show how easy both approximations and diversifications in meaning are.

From Criminal Psychology; a manual for judges, practitioners, and students by Hans Gustav Adolf Gross

Related Words

• diversity