the act or process of diversifying; state of being diversified. the act or practice of manufacturing a variety of products, investing in a variety of securities, selling a variety of merchandise, etc., so that a failure in or an economic slump affecting one of them will not be disastrous.
What is diversification investing? diversified portfolio example 2021.

What is a diversification in history?

1 : the act or process of diversifying something or of becoming diversified : an increase in the variety or diversity of something Between the appearance of complex cells 2.1 billion to 1.6 billion years ago and the explosive diversification of multicellular animals some 800 million years ago, not much happens in the …

What is diversification with example?

For example, an auto company may diversify by adding a new car model or by expanding into a related market like trucks. … If a company is expanding into industries that are unrelated to its current business, then it’s engaging in conglomerate diversification.

What is diversification in sociology?

noun. The quality of being made of many different elements, forms, kinds, or individuals: diverseness, diversity, heterogeneity, heterogeneousness, miscellaneousness, multifariousness, multiformity, multiplicity, variegation, variety, variousness.

What does diversification mean easy?

Diversification is a strategy that mixes a wide variety of investments within a portfolio. Portfolio holdings can be diversified across asset classes and within classes, and also geographically—by investing in both domestic and foreign markets.

Why is diversification important?

Diversification may help an investor manage risk and reduce the volatility of an asset’s price movements. … You can reduce risk associated with individual stocks, but general market risks affect nearly every stock, so it is also important to diversify among different asset classes.

What is diversification in geography?

Farm diversification This means that the farm will start to create other areas of income, such as creating a tourist attraction, offering bed and breakfast or selling produce via a farm shop. Some farms may also close and start a different business on the land. 1. 2.

What is the best example of diversification?

Apple. One of the most famous companies in the world, Apple Inc. is perhaps the greatest example of a “related diversification” model. Related diversification means there are notable commonalities between the existing products and services, and the new ones being developed.

What is Disney's diversification plan?

The company has pursued a diversification strategy, which means purchasing other companies that enable it to bring new products into new markets while remaining true to Disney’s origins. Today, 54% of Disney’s revenues—but only 32% of its profits—come from movies and parks.

Why do firm diversify?

Diversification is used by businesses to help them expand into markets and industries that they haven’t currently explored. … By expanding their reach and appeal, businesses are able to explore new avenues for sales, and in turn, have the potential to vastly increase their profits.

What is diversification in biology?

Evolution describes the cumulative changes that occur in the heritable characteristics of a population. It can result in diversification within a species (microevolution) or diversification between species (macroevolution)

What is the difference between diversity and diversification?

Diversity is a state of an organization or ecosystem of being diverse (including entities that are different in some respect). Diversification is in contrast a flux, a process that is ongoing in time. …

What is a synonym for diversification?

In this page you can discover 21 synonyms, antonyms, idiomatic expressions, and related words for diversification, like: diverseness, diversity, variegation, heterogeneity, heterogeneousness, multifariousness, miscellaneousness, multiformity, variety, variousness and job-creation.

What is diversification in media?

Diversification is the process of a company or business expanding their market or audience by either producing a wider variety of products, expanding their reach etc. However for media companies, diversification may involve expanding themselves to different areas of the industry.

What is the principle of diversification?

Principle of diversification. That portfolios of different sorts of assets differently correlated with one another will have negligible unsystematic risk. In other words, unsystematic risks disappear in diversified portfolios, and only systematic risks persist, those related to particular assets.

What is in a diversified portfolio?

A diversified portfolio is a collection of different investments that combine to reduce an investor’s overall risk profile. Diversification includes owning stocks from several different industries, countries, and risk profiles, as well as other investments such as bonds, commodities, and real estate.

How important is diversification in a portfolio?

Diversification ensures that by not “putting all your eggs in one basket,” you will not be creating an unwanted risk to your capital. Diversifying your stock portfolio is important because it keeps any part of your investment assets from being too heavily weighted toward one company or sector.

What is diversification and types of diversification?

There are three types of diversification: concentric, horizontal, and conglomerate.

What is rural diversification?

In its simplest terms rural diversification means the establishment of new enterprises in rural locations. This can mean existing businesses entering into new areas of activity or the creation of entirely new enterprises.

What is rural diversification geography?

Rural diversification is the development of methods of income generation (making money) that are in addition to, or instead of, traditional rural income sources such as farming. Farmers either do this by finding other ways to make money from their farm, whilst continuing to farm.

What is the difference between diversification and integration?

While vertical integration involves a firm moving into a new part of a value chain that it is already within, diversification requires moving into an entirely new value chain. Many firms accomplish this through a merger or an acquisition, while others expand into new industries without the involvement of another firm.

What are some of the forms of diversification?

  • Horizontal diversification.
  • Vertical diversification.
  • Concentric diversification.
  • Conglomerate diversification.
  • Defensive diversification.
  • Offensive diversification.
What is diversified business?

A diversified company is a type of company that has multiple unrelated businesses or products. Unrelated businesses are those that: Require unique management expertise. Have different end customers. Produce different products or provide different services.

How do organisms evolve and diversify?

Evolution and diversity result from the interactions between organisms and their environments and the consequences of these interactions over long periods of time. Organisms continually adapt to their environments, and the diversity of environments that exists promotes a diversity of organisms adapted to them.

What is divergent evolution?

What Is Divergent Evolution? Divergent evolution occurs when a population of animals or plants is split into two groups by a geographic barrier (for instance, a body of water or a migration to a new area), causing each group to develop different traits under their respective selective pressures and natural selection.

How does natural selection lead to diversification?

Diversifying (or Disruptive) Selection Sometimes natural selection can select for two or more distinct phenotypes that each have their advantages. … This type of selection often drives speciation. Diversifying selection can also occur when environmental changes favor individuals on either end of the phenotypic spectrum.

What is the difference between divers and diverse?

As adjectives the difference between divers and diverse is that divers is , in the sense of various or assorted while diverse is consisting of many different elements; various.

What does Diverify mean?

1 : to make diverse or composed of unlike elements : give variety to diversify a course of study. 2 : to balance (an investment portfolio) defensively by dividing funds among securities (see security sense 3) of different industries or of different classes diversify your investments.

What is the opposite of diversification?


What part of speech is diversified?

part of speech:transitive verbinflections:diversifies, diversifying, diversified

How do you use diversification in a sentence?

Diversification in a Sentence 1. Wal-Mart is known for having a diversification of products and is considered a one-stop shop. 2. Due to the diversification of investments available to the general public, I had a hard time determining which one to select.

What are the types of media ownership?

News media in India is owned by business families and individuals along with numerous investors, in the form of joint stock companies, societies, trusts and firms. The Government of India owns news media such as DD News and All India Radio.