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  1. Dictionary
    diversify
    /dʌɪˈvəːsɪfʌɪ/

    verb

    • 1. make or become more diverse or varied: "the trilobites diversified into a great number of species"

    More definitions, origin and scrabble points

  2. Learn the meaning of diversify, a verb that means to become varied or different, or to make something varied or different. See how diversify is used in different contexts, such as business, finance, and language.

    • Diversify in Spanish

      diversify translate: diversificar, diversificarse,...

    • Diversify in Russian

      DIVERSIFY translate: расширяться (о бизнесе) . Learn more in...

    • Simplified

      DIVERSIFY translate: 多样化;差异化, (使)多元化经营,(使)从事多种经营. Learn more...

    • Summary
    • Introduction
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    Diversification is a method of portfolio management whereby an investor reduces the volatility (and thus risk) of his or her portfolio by holding a variety of different investments that have low correlations with each other.

    The basic idea behind diversification is that the good performance of some investments balances or outweighs the negative performance of other investments. For example, lets assume that you work for Company XYZ--a beverage company--and you have $1 million to invest. Lets further assume that you could invest all $1 million in your employers stock, o...

    If you invest all $1 million in Company XYZ stock, and the stock goes from $4 to $2 per share, your portfolio loses 50% of its value and you end up with $500,000. Now lets assume that you invested $500,000 in Company XYZ stock and $500,000 in Company ABC stock. The Company XYZ stock then goes from $4 to $2 but the Company ABC stock, which has very ...

    The big catch with diversification is that to do it well, the securities in the portfolio need to not move together. That is, the less correlated they are, the better. For example, if you invested everything in six different bank stocks, its fair to assume that what affects one bank stock probably affects the other bank stocks in your portfolio to ...

    Diversification does not guarantee millions in riches, but it does reduce risk. Its one of the most fundamental, important investment concepts--one of the first pieces of investment advice most people get. One only needs to think about the Enron employees who placed all of their 401(k) savings in Enron stock to understand why failing to diversify i...

    Learn the meaning of diversify, a verb that means to make diverse or composed of unlike elements, or to balance an investment portfolio. See examples, word history, and related words.

  3. Diversify definition: to make diverse, as in form or character; give variety or diversity to; variegate.. See examples of DIVERSIFY used in a sentence.

  4. Definition of diversify verb in Oxford Advanced Learner's Dictionary. Meaning, pronunciation, picture, example sentences, grammar, usage notes, synonyms and more.

  5. Diversify means to vary in type. It's often used to discuss risk in financial activities. You might diversify your investments by spreading your wealth among different types of stocks.

  6. Diversify means to give variety to, vary, or spread out activities or investments. See the origin, synonyms, and usage of diversify in different contexts and languages.

  7. Learn the meaning of diversify, a verb that means to increase the variety of things that one does or makes. Find synonyms, pronunciation, word frequency, and usage examples from Collins English Dictionary.