DEFINITION of 'Scalability'

A characteristic of a system, model or function that describes its capability to cope and perform under an increased or expanding workload. A system that scales well will be able to maintain or even increase its level of performance or efficiency when tested by larger operational demands.

BREAKING DOWN 'Scalability'

In the financial markets, scalability is the ability that exchanges, banks and financial institutions have to handle increased demands, such as higher trading volumes. In the corporate sense, a scalable company is one that can maintain or improve profit margins while sales volume increases.

  1. Profit Margin

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  4. Financial Modeling

    The process by which a firm constructs a financial representation ...
  5. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  6. Diseconomies Of Scale

    An economic concept referring to a situation in which economies ...
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