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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use