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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Scales

Definition:

Do re mi fa so la ti do! The term also refers to the way companies can 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 hundre million - if the retail price stays around 50 bucks, thats a lotta mega profit.

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