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 ?
Pro rata kicks in, for instance, when you buy an apartment at $50,000, explained Home Savings of America's Nicholas M.
88-11 What are some of those transactions for which pro rata cost allocation may be inappropriate?
Dow will pay two pro rata dividends that together total Dow's current quarterly dividend rate of $0.
The SBJPA committee report provides that a person acquiring stock in an S corporation from a decedent would treat as IRD his pro rata share of any item of income of the corporation that would have been IRD if that item had been acquired directly from the decedent.
The pro rata dividend declaration is contingent on the completion of the merger prior to the next regularly scheduled dividend record date for Peoples Energy, which is March 22, 2007.
The declaration of the pro rata dividend ensures that the timing of the merger will not adversely affect dividend payments to Unicom shareholders.
Without a pro rata deemed distribution, the conflict between the regulations under Sec.
Recently, in revenue ruling 90-13, the IRS reaffirmed the notion that the deemed surrender that occurs in a pro rata distribution satisfies the redemption requirement in a partial liquidation.
This Verizon Communications pro rata dividend, combined with the pro rata dividends declared on June 1 by the boards of Bell Atlantic Corp.
The Ninth Circuit recently ruled in Durando, 70 F3d 548 (1995), that shareholders' pro rata share of S income is not self-employment income for Keogh plan deduction purposes.
The dividend is the pro rata equivalent of an annual dividend of $1.