the practice of varying products, operations, etc, in order to spread risk, expand, exploit spare capacity, etc
2.
(in regional planning policies) the attempt to provide regions with an adequate variety of industries
3.
the act of diversifying
diversification in Finance
(dɪvɜrsɪfɪkeɪʃən)
noun
(Finance: Investment)
Diversification is the act of investing in different industries, areas, countries, and types of financial instruments, to reduce the chance that all of the investments will drop in price at the same time.
Diversification involves dividing investment funds among a variety of securities with different risk,reward, and correlation statistics so as to minimize unsystematic risk.
Through diversification, investors can offset losses on some investments with gains on others.
Diversification is the act of investing in different industries, areas, countries, and financialinstruments, to reduce the chance that all of the investments will drop in price atthe same time.
diversification in Accounting
(dɪvɜrsɪfɪkeɪʃən)
noun
(Accounting: Investing)
Diversification is the act of investing in a variety of different industries, areas, and financialinstruments, in order to reduce the risk that all the investments will drop in priceat the same time.
Diversification calls for spreading the portfolio among different types of assets, including notonly stocks but also bonds, real estate, international investments, and cash equivalents.
Through diversification, investors can offset losses on some investments with gains on others.
Diversification is the act of investing in a variety of different industries, areas, countries, andtypes of financial instruments, in order to reduce the chance that all of the investmentswill drop in price at the same time.
Examples of 'diversification' in a sentence
diversification
What other advice can you provide for managing diversification without damaging our core business?
Times, Sunday Times (2016)
International diversification offers great opportunities but also much risk.
Times, Sunday Times (2015)
No wonder experts are urging investors to consider international diversification to diminish risk.
Times, Sunday Times (2016)
It is obvious that diversification reduces risk.
Charles A. D'Ambrosio & Stewart D. Hodges & Richard Brealey & Stewart Myers Principles of Corporate Finance (1991)
The managers will not invest for international diversification.
Times, Sunday Times (2006)
The chapter also pays considerable attention to the benefits of international portfolio diversification.
Maurice D. Levi International Finance: The markets and financial management of multinational business. (1983)
But it is only fair to add that international diversification is no panacea.
Times, Sunday Times (2016)
The remainder of the fund is invested in index-linked bonds to provide diversification and inflation protection.
Times, Sunday Times (2015)
Certainly, actively managed or tracker funds are sensible and provide portfolio diversification.
Times, Sunday Times (2016)
So it is worth considering European opportunities for international diversification.
Times, Sunday Times (2015)
A The simplest way to diminish your exposure to investment risks is diversification.
Times, Sunday Times (2015)
Shareholders should remember that opportunities do not end at Dover and consider international diversification into some of the most rapidly growingeconomies in the world.
Times, Sunday Times (2015)
Within an economy there is some degree of independence of asset returns, and this provides some diversification opportunities for investors who do not venture abroad.
Maurice D. Levi International Finance: The markets and financial management of multinational business. (1983)
Also, global firms provide geographic diversification, which reduces risk in a portfolio.
Times, Sunday Times (2014)
This raised the risk of insufficient diversification and too much volatility, M&G said.
Times, Sunday Times (2011)
By the beginning of the 1980s the character of the business was becoming more international, with diversification and collaboration with other firms in parts of its operations.