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 ?
In the event that any of these tests are not met, payments will be made on a pro rata basis (except for the senior coverage test, pursuant to which payments are made first, to the class A-FP and A-1 notes and second, to the class A-FP and A-2 notes) to pay down the principal amount of the notes included in the coverage test until the failing coverage test is cured.
Therefore, in accordance with the terms of the tender offer, the Fund is purchasing shares on a pro rata basis from all tendering stockholders, other than stockholders holding 99 or fewer shares who tendered all their shares and from whom the Fund is accepting all shares properly tendered (aggregating 24,835.
If the audited consolidated financial statements of GRC do not reflect at least $4,819,500 of after-tax net income or $5,823,465 of after-tax net income before minority interest for the fiscal year ending December 31, 2006, one-half of the escrow shares will be distributed on a pro rata basis to the investors.
At all other times, principal distributions will be made on a pro rata basis.