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.
The geographical diversification hedges against political tensions with China and brings it closer to U.S. customers like Apple and Nvidia that want more domestic suppliers.
From The Wall Street Journal • May 11, 2026
Travel and tourism - a key pillar of diversification in several Gulf economies has been hit hard.
From BBC • May 6, 2026
“So it really kind of shows the resiliency and the diversification and the durability of what we’ve built over the last 18 years.”
From Barron's • May 6, 2026
But the best way to minimize your risk while building your capital is through diversification.
From MarketWatch • May 6, 2026
In short, Polynesia furnishes us with a convincing example of environmentally related diversification of human societies in operation.
From "Guns, Germs, and Steel: The Fates of Human Societies" by Jared M. Diamond
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.
