diversified company

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Diversified Company

A company that operates and/or invests in several different business sectors. A diversified company exists to reduce unsystematic risk; that is, when one industry is doing poorly, a diversified company may still do well if its other industries are performing well. As a result, stock in a diversified company is generally more stable than the average stock. See also: Conglomerate merger.

diversified company

A company engaged in varied business operations not directly related to one another. A diversified company is less likely to suffer either a collapse or a spectacular gain in earnings compared with a firm concentrating its operations in a single business. Likewise, the stock of a diversified company is unlikely to bring extraordinarily large gains or losses to its shareholders.
References in periodicals archive ?
The purchase marks the latest large transaction by a real estate investment trust, or REIT, as they look to expand their portfolios quickly to take advantage of the premium investors are paying for fast-growing, diversified companies.

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