Legal Dictionary of Pakistan

Diversification

n. 1. A company's movement into a broader range of products, usu. by buying firms already serving the market or by expanding existing operations <the soft-drink company's diversification into the potato-chip market has increased its profits>. 2. The act of investing in a wide range of companies to reduce the risk if one sector of the market suffers losses <the prudent investor's diversification of the portfolio among 12 companies>. - diversify, vb.