Proration
Barron's Accounting Dictionary:
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Proration
Allocating or assigning an amount in proportion to some base to an activity, department, or product. Service costs are frequently allocated to user departments based on the base allocation formula/ procedure (e.g., number of employees, machine hours spent).
See also allocation.
See also allocation.
| Proprietorship, Proprietary Theory, Proprietary Fund | |
| Prospectus, Protocol, Provision |
Investopedia Financial Dictionary:
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Proration
A situation during a corporate action in which the available cash or shares are not sufficient to satisfy the offers tendered by shareholders. Therefore, a proportion of both cash and shares is granted for each offer tendered.
Investopedia Says:
When you tender an offer for a corporate action, the company making the bid will attempt to fulfill the tender as you requested. However, if the company does not have enough stock or cash, a mixture will be given in order to appease all stockholders.
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Barron's Accounting Dictionary
Dictionary of Accounting Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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