diversification

diversification
1) Movement by a manufacturer or trader into a wider field of products. This may be achieved by buying firms already serving the target markets or by expanding existing facilities. It is often undertaken to reduce reliance on one market, which may be diminishing (e.g. tobacco), to balance a seasonal market (e.g. ice cream), or to provide scope for general growth.
2) The spreading of an investment portfolio over a wide range of companies to avoid serious losses if a recession is localized to one sector of the market.

Accounting dictionary. 2014.

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  • diversification — [ divɛrsifikasjɔ̃ ] n. f. • fin XIIIe; de diversifier ♦ Action de diversifier, de se diversifier; son résultat. La diversification du savoir. (v. 1966) Comm. Le fait, pour une entreprise, de varier ou d élargir la gamme de ses produits ou de ses… …   Encyclopédie Universelle

  • Diversification — may refer to: Diversification (finance) involves spreading investments Diversification (marketing strategy) is a corporate strategy to increase market penetration Agricultural diversification involves the re allocation of some of a farm s… …   Wikipedia

  • diversification — I noun alteration, assortment, change, contrast, deviation, difference, differentiation, heterogeneity, multifariousness, multiformity, separation, shift, variation associated concepts: diversification of investments II index innovation Burton s… …   Law dictionary

  • Diversification — Di*ver si*fi*ca tion, n. [See {Diversify}.] 1. The act of making various, or of changing form or quality. Boyle. [1913 Webster] 2. State of diversity or variation; variegation; modification; change; alternation. [1913 Webster] Infinite… …   The Collaborative International Dictionary of English

  • diversification — c.1600, noun of action from M.L. diversificare (see DIVERSIFY (Cf. diversify)). Economic sense is from 1939 …   Etymology dictionary

  • Diversification — La diversification est le fait pour une entreprise d investir dans de nouvelles activités. Sommaire 1 En gestion d entreprise 1.1 Diversification externe / interne 1.2 Tests de diversification (options réelles) …   Wikipédia en Français

  • Diversification — Dividing investment funds among a variety of securities with different risk, reward, and correlation statistics so as to minimize unsystematic risk. The New York Times Financial Glossary * * * diversify di‧ver‧si‧fy [daɪˈvɜːsfaɪ ǁ dˈvɜːr , daɪ… …   Financial and business terms

  • diversification — Dividing investment funds among a variety of securities with different risk, reward, and correlation statistics so as to minimize unsystematic risk. Bloomberg Financial Dictionary The process of holding a range of investments in order to… …   Financial and business terms

  • Diversification — A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk… …   Investment dictionary

  • diversification — noun 1. the act of introducing variety (especially in investments or in the variety of goods and services offered) (Freq. 1) my broker recommended a greater diversification of my investments he limited his losses by diversification of his product …   Useful english dictionary

  • diversification — (di vèr si fi ka sion) s. f. Action de diversifier. HISTORIQUE    XIVe s. •   Selon la diversification de la reflexion de lumiere causée de l aer ou d aucunes vapeurs, ORESME Thèse de MEUNIER.. ÉTYMOLOGIE    Voy. diversifier. SUPPLÉMENT AU… …   Dictionnaire de la Langue Française d'Émile Littré

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