diversification

noun

di·​ver·​si·​fi·​ca·​tion də-ˌvər-sə-fə-ˈkā-shən How to pronounce diversification (audio)
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
2
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
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

Examples of diversification in a Sentence

Recent Examples on the Web
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Supply chain diversification takes time and money that many companies, especially smaller ones, simply don't have. Phil Lempert, Forbes.com, 13 Sep. 2025 For collectors seeking diversification, these models provide more than aesthetic appeal. Connie Etemadi, USA Today, 11 Sep. 2025 This momentum persisted into 2025, with net acquisitions of 10 tonnes in July alone, driven by diversification strategies and geopolitical considerations. Michael Khouw, CNBC, 11 Sep. 2025 The fund has been using its financial muscle to make investments in international firms and bring them to the kingdom to help its economic diversification plan. Matthew Martin, semafor.com, 9 Sep. 2025 See All Example Sentences for diversification

Word History

Etymology

borrowed from Middle French & Medieval Latin; Middle French diversificacion, diversification, borrowed from Medieval Latin dīversificātiōn-, dīversificātiō "differentiation, variation," from dīversificāre "to differentiate, diversify" + Latin -tiōn- -tiō, suffix of verbal action

First Known Use

1603, in the meaning defined at sense 1

Time Traveler
The first known use of diversification was in 1603

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Cite this Entry

“Diversification.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/diversification. Accessed 16 Sep. 2025.

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