proportion

(noun)

A quantity of something that is part of the whole amount or number.

Related Terms

Examples of proportion in the following topics:

  • Percentage Returns

    • Percentage returns show how much the value of the investment has changed in proportion to the size of the initial investment.
    • This is because it does not only matter how much money was earned on the investment, it matters how much was earned in proportion to the cost.

  • Debt to Equity

    • The debt-to-equity ratio (D/E) indicates the relative proportion of shareholder's equity and debt used to finance a company's assets.
    • The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

  • Methods of Paying Dividends

    • Therefore, a shareholder receives a dividend in proportion to their shareholding.
    • They are usually issued in proportion to shares owned.

  • Dividend Payments and Earnings Retention

    • Therefore, a shareholder receives a dividend in proportion to their shareholding.
    • They are usually issued in proportion to shares owned (for example, for every 100 shares of stock owned, a 5% stock dividend will yield five extra shares).

  • Reverse Splits

    • In order for Jim's ownership stake to remain constant, the number of shares he holds must change in proportion to change in outstanding shares: he must own 20 shares if there are 2,000 shares outstanding.
    • The reduction in the number of issued shares is accompanied by a proportional increase in the share price.

  • Assets

    • The investor's proportional share of the associate company's net income increases the investment (and a net loss decreases the investment), and proportional payment of dividends decreases it.
    • In the investor's income statement, the proportional share of the investee's net income or net loss is reported as a single-line item.

  • Total Debt to Total Assets

    • The debt/asset ratio shows the proportion of a company's assets which are financed through debt.

  • Portfolio Diversification and Weighting

    • The "weight" is the proportion of that portfolio assigned to one category.

  • Dividend Reinvestments

    • Some DRIPs are free of charge for participants, while others do charge fees and/or proportional commissions.

  • The Cost of New Common Stock

    • If a mixture of these sources is used, the company must then decide the proportion of internal versus external sources that will be utilized, and subsequently the marginal cost of capital.