diversification

American  

[dih-vur-suh-fi-kay-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

“Against the backdrop of excessive dependency on a single molecule, aggressive and heavy diversification bets, along with impeccable commercial execution, are the need of the hour.”

From The Wall Street Journal ● Sep. 23, 2026

“Infrastructure offers diversification, downside protection, and inflation protection that are particularly appealing in today’s environment of elevated geopolitical uncertainty,” he said.

From MarketWatch ● Sep. 23, 2026

Dziarski says that BAM is also increasing its diversification by expanding its client base over the last 10 years and bolstering its capital market fees to $250 million.

From The Wall Street Journal ● Sep. 18, 2026

While ETFs and passive investing have historically been a good way to introduce diversification, market concentration around megacap tech names can result in portfolios having more exposure to AI infrastructure names than investors realize.

From MarketWatch ● Sep. 14, 2026

If so, what were the environmental differences responsible for diversification on the continents, and what were their consequences?

From "Guns, Germs, and Steel: The Fates of Human Societies" by Jared M. Diamond

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

The process of selection has led to some very wide diversifications of the body.

From Domesticated Animals Their Relation to Man and to his Advancement in Civilization by Nathaniel Southgate Shaler

Related Words

• diversity