Insurance

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

Conditionally renewable

Understand the meaning and definition of Conditionally renewable in the context of stock market, trading, and investments.

MORE
Post-loss activities

Understand the meaning and definition of Post-loss activities in the context of stock market, trading, and investments.

MORE
Combined ratio

Understand the meaning and definition of Combined ratio in the context of stock market, trading, and investments.

MORE
Affinity sales

Understand the meaning and definition of Affinity sales in the context of stock market, trading, and investments.

MORE
Asset-backed securities

Understand the meaning and definition of Asset-backed securities in the context of stock market, trading, and investments.

MORE
Open Free Demat Account!

Join our 3.5 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3.5 Cr+ happy customers