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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use