Pro rata

Pro rata is the division of revenues, expenses, assets, liabilities, or other such items among participants that is based on each participant’s proportional share of the whole.

For example, the remaining cash proceeds from the liquidation of a business entity are distributed to its shareholders, based on the number of shares held by each one. This is a pro rata distribution. Similarly, distributions are made to the partners in a partnership based on their ownership interests. This is also a pro rata distribution.