Home > Terms > English, UK (UE) > Diversification

Diversification

Not putting all your eggs in one basket. Investors are encouraged to do this by modern portfolio theory, as holding several different shares and other assets helps to reduce risk. At the sharp end of business, however, diversification is somewhat out of fashion. Economic studies of diversifying corporate mergers have found that these often hurt the shareholders of the acquiring firm; by contrast, diversified firms that have sold off non-core businesses have typically made their shareholders much better off.

This is auto-generated content. You can help to improve it.
0
Improve it
More
Collect to Blossary

Other Languages:

More

Member comments

You have to log in to post to discussions.

Related terms

diversification
Banking; Investment banking

Strategy of spreading an investment over different assets in order to reduce the portfolio risk.

diversification
Professional careers; Sales

A growth strategy in which an organisation takes on new products and new markets at the same time.

diversification
Economy; Economics

Not putting all your eggs in one basket. Investors are encouraged to do this by modern portfolio theory, as holding several different shares and other assets helps to reduce risk. ...

diversification
Automotive; Automobile

In today's market, especially in smaller centers, a dealership cannot make a profit on just one brand of vehicle -- especially foreign imports. Thus the dealership will diversify ...

diversification
Financial services; General Finance

Dividing investment funds among a variety of securities with different risk, reward, and correlation statistics so as to minimize unsystematic risk.

immaterial economy
Economy; Economics

An economy in which traditional investment in areas such as natural resources, equipment and infrastructures lags behind immaterial items such as training and research and ...

digital economy
Economy; Economics

The digital economy represents the persuasive use of IT (hardware, software, applications and telecommunications) in all aspects of the economy, including internal operations of ...

knowledge management
Economy; Economics

Management of the intellectual product that is generated by associating relationships among items of data and information in a given field. Source: Termium plus. Sub verbis ...

internet economy
Economy; Economics

A business environment created by networks of enterprises conducting e-commerce. (The "I" in "internet is normally spelled with a capital "I") Source: Samarajiva, Rohan. “How the ...

circular economy
Economy; Economics

The discipline which focuses on the design, development, operation, renewal and decommissioning of industrial facilities as ecological systems, with an emphasis on the ...

economic intelligence
Economy; Economics

The techniques for extracting essential information from a large volume of data and presenting it in an easy-to-understand form, hiding all complexity, making it suitable for ...

Terms in the News

Featured Terms

Harry8L
  • 0

    Terms

  • 0

    Blossaries

  • 1

    Followers

Industry/Domain: Military Category: General military

RQ-170 Sentinel

Nick-named the Beast of Kandahar, the RQ-170 Sentinel is an unmanned aerial vehicle (UAV) developed by Lockheed Martin for the Central Intelligence ...

Contributor

Featured blossaries

Best Writers

Category: Literature   1 2 Terms

Everything Football Related

Category: Sports   1 6 Terms

Browers Terms By Category

TERMS

SOCIAL

EXTRAS

SOLUTIONS