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The phrase " pro rata basis" means that each stockholder receives additional shares equal to the percentage of shares held. true or false .?

Accounting Cost Accounting Financial Accounting managerial accounting
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Question added by Said Shaban , Accountant , Tri State Materials Testing
Date Posted: 2015/08/12
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Gashirai Masvikeni
by Gashirai Masvikeni , Audit Senior , Grant Thornton Cape (South Africa)

True: The term pro rata means in proportion to. Therefore, if a stockholder holds x% of the total shares in issue, prior to the pro rata issue, that stockholder will receive x% of the shares available under the pro rata issue.

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