Pete Daoust
PRIME Stands for Prescribed Right to Income and Maximum Equity, a certificate that entitles the owner to the /income from an underlying security, but not to the capital appreciation of that security. Copyright � 2012, Campbell R. Harvey. All Rights Reserved. Prime 1. In commercial banking, the best available interest rate under most circumstances. Generally speaking, only the most creditworthy customers receive the prime, but this is not always true. In any case, a prime serves as a benchmark against which other interest rates are compared. In this sense, it is also called the prime rate.
2. Describing the highest possible credit rating on a bond, either Aaa (for Moody's) or AAA (for S&P and Fitch).
prime (pr?m) adj. 1. First or highest in rank or importance; main
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