Pro rata rights refer to the right of first refusal (ROFR) given to investors (typically institutional ones) that allow them to buy an equivalent amount of equity that they would ‘lose’ due to dilution in the round(s) after the one they originally invested in.Pro-rata right is a legal term that describes the right, but not the obligation, that can be given to an investor to maintain their initial level of percentage ownershipStockholders EquityStockholders Equity (also known as Shareholders Equity) is an account on a company’s balance sheet that consists of share capital.