Diversification 1. At the company level, extending the sphere of a company’s activity, e.g., a tobacco company entering into the hotel business or manufacture of paper, cement, leasing, etc. 2. An investor spreading his risk of investment by distributing it among gold, COLLECTIBLES, real estate, mutual funds, fixed deposits, debentures and shares, and within shares, of companies of different industrial groups, different degrees of volatility, and different geographical locations.

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