Note: This article is part of Morningstar's 2018 Guide to IRAs special report. A version of this article appeared on Oct. 10, 2016. At first blush, the term "pro rata" sounds like the worst type of ...

Pro rata rights or proportional rights let existing investors keep their ownership stake by investing more when a company raises funding. Pro rata rights, sometimes called proportional rights, are ...

Whenever pro-rata rights are involved, you can always smell some drama. When a company raises a financing round, new and old investors often battle it out for the largest stake they can get. While ...