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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Having interests across multiple jurisdictions creates possibilities for wealth creation as part of a broader diversification strategy but also presents complexities. Dbs Private Bank, Forbes.com, 27 May 2025 Nonetheless, Central Asia’s growing economic importance—as a source of critical raw materials, energy diversification, and strategic balance vis-à-vis Russia and China—makes these routes worth developing. Zaur Shiriyev, Foreign Affairs, 26 May 2025 The conclave may not yet have felt ready to install an Asian or African pope, but having one who is mixed-race helps prepare for the racial and ethnic diversification of the office that is inevitable. Rebecca R. Bibbs, Chicago Tribune, 25 May 2025 Mario Morales, group vice president of semiconductors and enabling technologies at the International Data Corporation, said that Qualcomm’s entrance into the data center space is a good move to help its diversification — and that the market is large enough for a new entrant. Arjun Kharpal, CNBC, 19 May 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

Browse Nearby Words

Cite this Entry

“Diversification.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/diversification. Accessed 3 Jun. 2025.

More from Merriam-Webster on diversification

Last Updated: - Updated example sentences
Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!