pro rata

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Pro rata

Shared or divided according to a ratio or in proportion to participation.

Pro Rata

Describing a distribution according to some proportion. For example, a salary may be stated as $120,000 per year pro rata. This means that if an employee only works for six months, his/her salary will be $60,000. Likewise, dividends are distributed pro rata, meaning that shareholders receive them according to the proportion of shares that they own.

pro rata

Used to refer to something on a proportional basis. For example, in a rights offering, rights are distributed to stockholders on the basis of the number of shares already held by each stockholder. Thus, the pro rata distribution enables the stockholders to purchase new shares in proportion to the old shares they already own.

pro rata

Proportionate to one's interests or claims.In bankruptcy,unsecured creditors will receive their pro rata portion of any money left after paying secured creditors, attorneys'fees, and costs of administration. If the unsecured claims total $1,000,000, and the money left for distribution is $10,000, then each creditor will receive 1 cent for each dollar of their claim.

References in periodicals archive ?
The Independent Trustees retained Cornerstone Research to analyze the amount that could be distributed to remaining investors on a pro rata basis based on certain assumptions.
Such gain is computed on a pro rata basis, based on the relationship of the reduction in basis to the loan's face value.
Monthly interest is allocated first among the class A notes on a pro rata basis and then sequentially to the class B and C notes and the certificates.
Therefore, in accordance with the terms of the tender offer, the Fund is purchasing shares on a pro rata basis from all tendering stockholders.