Meaning of the word diversification in English

What does diversification mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

diversification

US /dɪˌvɝː.sə.fəˈkeɪ.ʃən/
UK /daɪˌvɜː.sɪ.fɪˈkeɪ.ʃən/
"diversification" picture

Noun

1.

the process of a company enlarging or varying its range of products or fields of operation

Example:
The company's diversification strategy included expanding into new markets.
Diversification helps reduce risk in a business.
2.

the process of investing in a range of assets to reduce the impact of poor performance by any single asset

Example:
Financial advisors often recommend diversification of investment portfolios.
Effective diversification can protect against market volatility.