Investor Glossary-pro rataInvestor Glossary-pro rataInvestor Glossary-pro rataInvestor Glossary-pro rataInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Pro Rata

The HTML to link to this page
 

Pro rata means in proportion to. Thus pro rata is used when costs, proceeds, profits, etc. are divided among participants according to ownership or some other factor. For example, suppose daily usage charges for periods of less than one day are applied pro rata based on hours. If the daily charge is $24, the pro rata cost for three hours is $3. Or suppose a company makes a pro rata cash distribution of $10 per share. If a shareholder has 200,000 shares, he or she receives $2,000,000. Pro rata is used in many financial and legal contexts: insurance policies may have pro rata clauses based on the assessed value of one property to the assessed value of all properties; legal settlements may be distributed pro rata based on the proportion of an individual claim to all claims; and a retiree may received pro rata payments based on each year of service worked.



Rate this pro rata definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: deferred revenue, FTSE, labor relations, debt service coverage, EBITDA, ex-dividend date, covered put, diluted share, LIBOR, Key Rate Duration, stock split, retained earnings, implied volatility, irrevocable trust, per diem, ex-dividend, 401a, balance sheet, Zero Cost Collar, reverse mortgage, in escrow, real GDP, open position, risk management, required rate of return, class C shares, stock market close, liquidity ratio, 1035 exchange, margin rate, quality assurance, limit order, dividends payable, FICO score, average price per share, option premium, phantom income, 144a, cancelled check, 1031 exchange, deferred tax, current ratio, annual return, wholly-owned subsidiary, APR, VIX, inflation, minority interest, command economy


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use