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 ?
She admitted a high pro rata is a difficult problem to overcome, but in many cases, such as with buildings with a block of sponsor units on the market, arrangements can be made.
Yet, few would disagree the pro rata allocation approach is inappropriate for the transactions addressed by the EITF consensus and that the relative fair value cost allocation approach generates a preferable accounting result.
These sections state that a shareholder's gross income includes his pro rata share of the S income and the character of any item included in the pro rata share will be determined as if the item were realized directly by the shareholder from the source from which it was realized by the corporation.
Planning idea: The debt issuer may use the new pro rata prepayment provision to accelerate income or deductible premium, depending on the terms of the instrument and the current interest rate market, by prepaying part of the outstanding obligation.
The shareholder may purge the PFIC taint by including in income as a dividend (treated as an excess distribution) his pro rata share of the corporation's post-1986 earnings and profits.
in that event, the pro rata method cannot be used, and the specific accounting method is required (rather than elective).