Task: Instance Description Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes the instance 'pro rata convention'?

A. convention involving an impartial lottery for determining which securities are subject to partial call or partial redemption
B. an interest rate of zero (0) percent
C. convention whereby securities that are subject to partial redemption are allocated proportionately
D. rate basis calculated as a percentage of cumulative average value

Answer: convention whereby securities that are subject to partial redemption are allocated proportionately