Pro rata is a term used to describe a proportionate allocation. It's a method of assigning an amount to a fraction according to its share of the whole.

Although the majority of small businesses in the United States operate as sole proprietorships, many companies have multiple owners. If these multiple-owner companies are legally structured as regular ...

Most insurance policies are written for a specific term. Business auto polices, for example are usually written for the term of one year. In a perfect world, one-year policies come and go without need ...

In the context of a term sheet, pro rata rights (or pro rata) govern whether investors may continue to invest in subsequent rounds of funding in proportion with their ownership. Investors with pro ...

Q. Hi Dan. In your last column you wrote about “… a rather infamous provision dubbed the ‘pro-rata rule.’” One of my IRAs is non-deductible, so I need to know what that is and why it’s infamous. Can ...

Lee Edwards, partner at Root VC, has a saying at his firm that “pro rata rights are earned, not given.” That may be a bit of a stretch since pro rata refers to a term that VCs put in their term sheets ...