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Definition of diversification

diversification

/daɪˌvɜːrsɪfɪˈkeɪʃən/
di · ver · si · fi · ca · tion
Plural:diversifications
•
Adjective:diversified
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diversification Lexical Profile

diversification Game Scores & Validity

• noun

1

The corporate or financial strategy of expanding into new markets, products, or asset classes in order to reduce risk and increase profitability.

Example

"Financial advisors recommend portfolio diversification across stocks, bonds, and real estate to protect against market volatility."

2

The action or process of making or becoming more varied, diverse, or heterogeneous.

Example

"The diversification of the university curriculum allowed students to explore a wider range of interdisciplinary subjects."

Synonyms
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Antonyms
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• Rhymes for diversification

• Nearby Words

diverse
diversely
diverseness
diversification
diversifier
diversify
diversion

Word Origin & Etymology

Coined in the early 17th century from the Medieval Latin verb 'diversificare' (to make diverse), combining Latin 'diversus' (turned different ways) and 'facere' (to make or do).

Cite this Entry

Wordmom. (2026). Definition of Diversification. In Wordmom Dictionary. Retrieved Nov 5, 2026, from https://wordmom.com/dictionary/diversification
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