diversification
noun
di·ver·si·fi·ca·tion
də-ˌvər-sə-fə-ˈkā-shən 
dī-
1
: the act or process of diversifying something or of becoming diversified : an increase in the variety or diversity of something
Between the appearance of complex cells 2.1 billion to 1.6 billion years ago and the explosive diversification of multicellular animals some 800 million years ago, not much happens in the fossil record.—
Carolyn Gramling
Carolyn Gramling2
a
: the act or practice of spreading investments among a variety of securities or classes of securities
I've emphasized bond mutual funds because they're so useful for investors of average means. You get diversification (because the fund owns many types of bonds) and liquidity (you can cash out, at the market price, whenever you want).—Jane Bryant Quinn
Jane Bryant Quinn
b
: the act or policy of increasing the variety of a company's products
And it envisions a diversification into products such as clothing and electronics, which Nakasone hopes will attract more customers outside the busy holiday season.—Karl Taro Greenfeld
Karl Taro GreenfeldExamples of diversification in a Sentence
Recent Examples on the Web
Also, by overweighting the same securities through passive vehicles, investors’ holdings look like a sea of sameness, heightening systematic risk and limiting diversification.
—Mike Terwilliger, Fortune, 24 Oct. 2025
Last year’s top choice, at 34%, was portfolio diversification.
—Hayley Cuccinello, CNBC, 24 Oct. 2025
The diversification push is directing investment, policymaking, and research toward industries like autonomous mobility, culture and tourism, financial services, food security, and health care.
—Kelsey Warner, semafor.com, 22 Oct. 2025
Building resilience is also crucial, and this includes retaining financial reserves to manage the cash flow burden of diversification, maintaining safety stock for essential commodities, and dynamic pricing that adapts to tariffs.
—Vitalii Savryha, Sourcing Journal, 21 Oct. 2025
See All Example Sentences for diversification
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Mike Terwilliger, Fortune, 24 Oct. 2025
Last year’s top choice, at 34%, was portfolio diversification.
—Hayley Cuccinello, CNBC, 24 Oct. 2025
The diversification push is directing investment, policymaking, and research toward industries like autonomous mobility, culture and tourism, financial services, food security, and health care.
—Kelsey Warner, semafor.com, 22 Oct. 2025
Building resilience is also crucial, and this includes retaining financial reserves to manage the cash flow burden of diversification, maintaining safety stock for essential commodities, and dynamic pricing that adapts to tariffs.
—Vitalii Savryha, Sourcing Journal, 21 Oct. 2025
See All Example Sentences for diversification
Cite this Entry
“Diversification.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/diversification. Accessed 31 Oct. 2025.
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