DEFINITION of '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.


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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    An offer to purchase some or all of shareholders' shares in a ...
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    1. An offer made by an investor, a trader or a dealer to buy ...
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    A distinguishing symbol, mark, logo, name, word, sentence or ...
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