pro rata

(redirected from Pro-Rating)
Also found in: Dictionary, Thesaurus, Medical, Legal.

Pro rata

Shared or divided according to a ratio or in proportion to participation.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.