Pro Rata
InvestingProportional allocation or distribution, commonly used in insurance claims, investment distributions, and tax calculations.
Example
Example: Consider an investor building a $100,000 portfolio. Pro Rata — proportional allocation or distribution, commonly used in insurance claims, investment — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.