proratable factor

Proratable Factor

The percentage of shares that may be exchanged for other stock or cash. This may happen in a bankruptcy or in a takeover. For example, if so many shareholders seek to trade in their stocks at one time that the company lacks to cash to cover it, the company may use a proratable factor to cover at least a proportion of the exchanges. To give another example, if a company is taken over for cash and equity, the proratable factor is used to determine how much of each a shareholder receives for each share of the company that has been taken over. See also: Proration, Exchange ratio.

proratable factor

The proportion of shares tendered by each stockholder that will be accepted for purchase or exchange.

单词	proratable factor
释义	proratable factor Proratable Factor The percentage of shares that may be exchanged for other stock or cash. This may happen in a bankruptcy or in a takeover. For example, if so many shareholders seek to trade in their stocks at one time that the company lacks to cash to cover it, the company may use a proratable factor to cover at least a proportion of the exchanges. To give another example, if a company is taken over for cash and equity, the proratable factor is used to determine how much of each a shareholder receives for each share of the company that has been taken over. See also: Proration, Exchange ratio. proratable factor The proportion of shares tendered by each stockholder that will be accepted for purchase or exchange.
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