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 ?
Applying the pro rata method of allocation here does not violate the reasonable expectations of the insurer or the insured.
2 beef Oxo cubes pro rata (80p for six pack) ...........................
First, the IRS addressed whether the pro rata division causes the new CRTs to fail to qualify as CRTs under section 664(d).
New Law: The amount of a shareholder's basis reduction in the shareholder's S corp stock, due to the S corp charitable donation, will be equal to the shareholder's pro rata share of the donated property's adjusted basis.
However if the employee works less than five days per week the increase will be on a pro rata basis.
In addition, consideration needs to be given to which subjects should be addressed in pro rata agreements.
At Bates College (ME), the 44 part-time lecturers are paid pro rata to their 203 full-time colleagues.
If passenger traffic grows faster than planned, the resulting higher income will go to the airlines on a pro rata basis.
The capital proposal is intended to apply to balance sheet assets retained by a seller (or transferor) that are structured, through subordination provisions or other credit enhancement techniques, to absorb more than a pro rata share of credit loss related to the transferred assets.
Under the terms of the agreement, Telefonica will subscribe for its pro rata shares and purchase any shares not purchased by the other Terra shareholders.
If the Wellspring transaction goes through, parties with unsecured claims against Paragon will receive distributions in amounts equal to their pro rata share of cash, new notes and new common stock in the reorganized Paragon.
In most plans, grants are made annually, but vest pro rata over four years, with eligibility and grant size left to the discretion of the board.