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TeachMeFinance.com - explain Scaling down historic definition... Scaling down -- Cutting down or reducing proportionately or on a scale, as scaling down interest. If a company has two or more issues of bonds not bearing the same rate of interest and in a reorganization of the company or a refunding of its bonds the rates of interest on the bonds are reduced proportionately the operation of reducing the interest is called scaling down the interest. The term scaling down does not apply when there is only one issue of bonds upon which the rate of interest is to be reduced, unless the rate of interest on this issue is to be reduced a certain amount at the end of each successive specified period. If the rate of interest on a single issue of bonds is simply made lower without provision for a further lowering the operation is described as reducing or cutting down the interest. If a company which has two or more classes of stock lowers the dividends on them proportionately the operation is described as scaling down dividends. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.