diversification
Americannoun
-
the act or process of diversifying; state of being diversified.
-
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
-
commerce the practice of varying products, operations, etc, in order to spread risk, expand, exploit spare capacity, etc
-
(in regional planning policies) the attempt to provide regions with an adequate variety of industries
-
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
Looking to grow your vocabulary? Check out this interactive, curated word list from our team of English language specialists at Vocabulary.com – one of over 17,000 lists we've built to help learners worldwide!
Personal Finance and Financial Literacy - High School
Interested in learning more words like this one? Our team at Vocabulary.com has got you covered! You can review flashcards, quiz yourself, practice spelling, and more – and it's all completely free to use!
Out of the Dust
Want to remember this word for good? Start your learning journey today with our library of interactive, themed word lists built by the experts at Vocabulary.com – we'll help you make the most of your study time!
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 is almost never a bad thing, and crises don’t last forever.
From The Wall Street Journal • Mar. 9, 2026
Diversification has clearly helped investors this month given the big wobbles in tech stocks.
From Barron's • Nov. 21, 2025
Diversification means owning things that won’t all blow up for the same reason at the same time.
From MarketWatch • Nov. 6, 2025
Diversification of agricultural systems could not only help mitigate wildfires, but also aid food production and promote biodiversity conservation.
From Salon • Nov. 1, 2023
Diversification of employment is absolutely necessary to produce competition for the purchase of labour.
From The slave trade, domestic and foreign Why It Exists, and How It May Be Extinguished by Carey, H. C. (Henry Charles)
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.
