Pro-Rata
Used to describe a proportionate allocation. A method of assigning an amount to a fraction, according to its share of the whole. Investopedia Says:
For example, a pro-rata dividend means that every shareholder gets an equal proportion for each share he or she owns. Pro-rating also refers to the practice of applying interest rates to different time frames. If the interest rate was 12% per annum, you could pro-rate this number to be 1% a month (12%/12 months). Related Terms:
Dividend
Interest Rate
Pro-Rata Tranche
Retrocession
Shareholder |