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 partnership brings together two of the largest and most geographically diversified companies in the gaming entertainment industry.
He has held pivotal positions in leading diversified companies like Adani Power Ltd, Vedanta Group, Landis + Gyr Ltd, Century Enka Ltd, Asea Brown Boveri Ltd (ABB).
He has been a leading advisor to both large and mid-cap companies across the industrials sector with particular expertise in capital goods, diversified companies, industrial services, and transportation.
" The proposed restructuring will create one of India's largest, well- diversified companies with a healthy mix of business with steady cash flow and long- term growth opportunities," Aditya Birla Group chairman Kumar Mangalam Birla said.
This acquisition brings Lynx's expanding portfolio to 41 diversified companies across North America.
(ADF811) Diversified Companies Expected to Outperform Sector-Specific Names in Med Tech - Joanne K.
Swedish paper maker Holmen AB (STO: HOLM B) and Finnish sector player UPM-Kymmene Oyj (HEL: UPM1V) are the best diversified companies. Norske Skog is at the opposite end of this scale and the least diversified company, with its whole operations exposed towards newsprint and magazine paper.
The Diversified Companies and Senior Financial Solutions, two affiliated firms, have converted their subleases to multi-year direct leases at BroadAcres Office Park, relocating into a total of approximately 7,000 s/f of adjacent space at 200 Broadacres Drive.
A new report from PriceWatershouseCoopers (PwC) found that 2007 revenues for the world's 40 largest mining companies rose by a third last year to $312 billion due to the strength of diversified companies and mining firms in emerging nations.
The research confirmed that specialized insurance companies are more highly valued than diversified companies, underscoring the value of a strategy that combines further consolidation with a drive toward achieving greater specialization.
Conversely, markets are quicker than ever to discount the valuations of diversified companies as a result of their perceived shortcomings, including the cross-subsidization of financially unattractive projects and difficulties in aligning the management incentives of diverse business units with the fortunes of the corporation at large.

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