InsuranceConditionally renewable Post-loss activities Combined ratio Affinity sales Asset-backed securities Incurred but not reported losses (IBNR)
Pooling
of investors is known as pro rata
Pro rata refers to the practice of distributing total losses among a group of investors. This is done in proportion to each investor's stake in the venture. In other words, the bigger the investment, the greater the share of the losses. This concept is commonly used in the world of finance and is essential to understand for any investor. It ensures that everyone bears a fair share of the risks and rewards. So, always keep pro rata in mind when making investment decisions.
Related terms
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MOREUnderstand the meaning and definition of Incurred but not reported losses (IBNR) in the context of stock market, trading, and investments.
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