Underdiversify

verb

verb ·Rare ·Advanced level

Definitions

Verb
  1. 1
    To fail to diversify sufficiently.

    "A trader may underdiversify by focusing too narrowly on a small number of underlying securities, as well as using too few types of options strategies."

Example

More examples

"A trader may underdiversify by focusing too narrowly on a small number of underlying securities, as well as using too few types of options strategies."

Etymology

From under- + diversify.

More for "underdiversify"

Data sourced from Wiktionary, WordNet, CMU, and other open linguistic databases. Updated March 2026.