Scalability is the capacity of a system, such a computer network, or an organization to function effectively under an expanding or increased workload. A well-scaled system will be able to maintain or improve its level of performance even when it is put to the test by increasing operational demands. In the business sector, a scalable company is one that can maintain or enhance its profit margins as sales volume rises. Scalability in financial markets refers to an institution's capacity to meet rising market needs.