The process of dividing ongoing expenses such as taxes and P.O.A. fees between the buyer and seller at closing is called Prorating.
The meaning of Prorate is to divide, distribute, or assess proportionately. Proration is a specific corporate action taken in a merger or acquisition, share buyback or stock split, etc. The company offers the shareholders the option to select between cash and equity payout. Based on what the shareholders select, the available stocks are proportionately distributed among them if either cash or equity stocks are not available in sufficient quantity to satisfy the shareholder demand. The company ensures that everyone gets a fair share of the deal through the cash and shares proportional division.
To learn more about equity stocks here
brainly.com/question/14703755
#SPJ4
