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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.



Do re mi fa so la ti do!


The term also refers to the way companies grow. If a company sells a widget for a buck and that widget costs them 85 cents if they make a million them a year, and it only drops to costing them 80 cents if they make a billion of them a year, then that company "does not scale."

The opposite would be a software company which might cost $30 per unit for the first million units but might drop to $2 a unit on the next hundred million; if the retail price stays around 50 bucks, that's a lotta mega profit.