Scale Up

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What is a Scale Up?

When the price of a stock tends to fluctuate up and down frequently, a scale up is a strategy that can be used by investors to maximize their gains. A scale up consists of selling shares in a company incrementally and is attractive to investors since it can prevent the sale of stock too soon or too late to get the maximum amount of return. However, it can also be considered a risky strategy since selling too early can equate to a smaller return if the price per share raises unexpectedly.

Scale Up Examples

Examples of scale up:

  • Example 1. Mitigates the risk of selling stock too late
  • Example 2. Runs the risk of selling stock before the value increases
  • Example 3. Used by investors when momentum in share appears to start to slow down

Here’s another web page about a scale up strategy.

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