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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.


The process of determining the pro rata portions. In real estate, the term comes up frequently at a closing,when allocating certain property expenses.Usually real estate taxes are paid in arrears and homeowners association dues are paid in advance.The new owner will pay 100 percent of the real estate tax bill when it is presented after the closing, but a portion of that bill represents time periods when the seller owned the property.Likewise,the seller will have already paid the association dues for the month, but will own the property for only a portion of the month. At closing, these expenses are prorated between the buyer and seller. The buyer will receive a credit for the accrued-but-unpaid property taxes. The seller will receive a credit for the paid-but-unaccrued association dues.

References in periodicals archive ?
15 per unit on an annualized basis, prorated for the partial quarter following the closing of the partnership's initial public offering on November 21, 2007.
However, a returning expatriate may be able to qualify for a prorated exclusion available to individuals unable to meet the ownership/use tests due to a change of place of employment, health or unforeseen circumstances.
declared on July 7, 2006, a prorated dividend of 7 cents per share of common stock for the third quarter of 2006 for shareholders of record on July 14, 2006.
NYSE: COE) announced today that its Board of Directors has declared a prorated dividend on Columbia's common stock, subject to obtaining stockholder approval of the previously announced merger of Columbia with and into a wholly-owned subsidiary of the Commingled Pension Trust Fund (Special Situation Property) of JPMorgan Chase Bank, N.
After the non-prorated Tru PROtection coverage period, the warranty covers material replacement costs at a prorated rate for the duration of the warranty period.
Since agreement expires June 30, 2000, Miller will be paid for approximately eight months of work, with both the salary and fund prorated over that time.
The board of directors also declared a special distribution equal to a prorated portion of its regular quarterly distribution for the period beginning January 1, 2007 to and including the closing date of the merger transaction in an amount calculated as provided in the merger agreement.
Monsanto Company (NYSE: MON) today announced that its Board of Directors has declared a prorated quarterly dividend on its common stock that will equal 9 cents per share.
The Lakers will pay him their share of a prorated $5.
The delinquent property taxes accrue interest at an annual rate of 16% simple interest prorated monthly.
If the share exchange occurs on or before December 5, 2000, the dividend will be prorated based on the number of days from September 5, 2000, to the date preceding the closing of the share exchange.
68 in cash, a prorated dividend in an amount equal to approximately $0.