English Reference

Word

diversification

Phoneticsdi·ver·si·fi·ca·tion, stress on the fifth syllable

US/daɪˌvɝsəfəˈkeɪʃən/

UK/daɪvˌɜːsɪfɪkˈeɪʃən/

Definitions

01general variety

C1 · Advanced Uncountable noun Academic

n. the act of adding different types of things to a group to create more variety.

n. the process of becoming more varied or diverse in form or character.

“The diversification of the local economy helped the city survive when the main factory closed.”

“Ecological diversification within the rainforest allows thousands of species to coexist by occupying distinct niches within the same environment.”

Synonyms

variationexpansionbranching out

02investment strategy

C1 · Advanced Uncountable noun Science Technical

n. putting your money into many different types of investments so you do not lose everything if one fails.

n. a risk management technique that mixes a wide variety of investments within a portfolio to minimize the impact of any single asset's performance.

“Financial advisors recommend diversification so that your savings are safe even if the stock market drops.”

“The fund manager insisted on geographic diversification, arguing that exposure to emerging markets would hedge against a downturn in domestic equities.”

Usage

Often used with the preposition 'of' (diversification of assets) or 'into' (diversification into bonds).

Synonyms

spreading riskallocation

Antonyms

03business expansion

C1 · Advanced Uncountable noun Technical

n. when a company starts making new products or enters new markets to grow its business.

n. a corporate strategy of entering new markets or industries that are distinct from a company's core business operations.

“The farm's diversification into tourism helped them earn money during the winter months.”

“The tech giant's diversification into healthcare services represented a significant shift from its traditional focus on consumer hardware.”

Synonyms

Antonyms

Real-World Examples

“Previous studies suggest that regional variations in the size of snails available in different areas have contributed to the diversification of this beetle's body shape.”
Phys.org 17 Aug 2026
“This diversification shields criminal groups from “enforcement shocks,” such as crackdowns on drug smuggling.”
The Conversation 10 Aug 2026
“This stability may have provided key opportunities to support early animal life." The stable conditions of the deep ocean may therefore have offered a favorable setting for the earliest stages of animal diversification.”
ScienceDaily 6 Aug 2026

Etymology

From Medieval Latin diversificatiō, from diversificātus, past participle of diversificō (“diversify”), from Latin diversus (“turned in different ways”) + faciō (“make, do”). By surface analysis, diverse + -ification.

Etymology adapted from Wiktionary, available under CC BY-SA 4.0.

Word family

NOUN

diversification(C1)

ADJECTIVE

Domain

Finance

This entry

Exam level
CambridgeCambridgeCambridge English QualificationsThe exam suite from Cambridge University Press & Assessment, from A1 Movers up to C2 Proficiency. The benchmark names double as CEFR labels.C1 AdvancedIELTSIELTSInternational English Language Testing SystemThe 0–9 band test co-owned by the British Council, IDP, and Cambridge. Used for university entry, work, and migration.7.0–8.0TOEFL iBTTOEFL iBTTest of English as a Foreign Language, Internet-Based TestETS's academic English test, the standard route for US university admissions. Scored 0–120, with a 1–6 scale since 2026.1–6 scale: 5.0–5.595–113TOEICTOEICTest of English for International CommunicationETS's workplace English test, big in Japan and Korea. Listening & Reading scores 10–990 and tops out at C1.945–990
Frequency
Frequent
Level
C1 · Advanced
Updated

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English Reference