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Stands for Prescribed Right to Income and Maximum Equity, a certificate that entitles the owner to the dividend/income from an underlying security, but not to the capital appreciation of that security.


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).


1. Of or relating to a debt security rated AAA or Aaa.
2. See prime rate.


To come before another creditor in terms of priority of payment should there be insufficient assets to pay all creditors.A first mortgage holder primes a second mortgage holder,who primes a later judgment creditor, who primes a general unsecured creditor. Filing for bankruptcy reshuffles the deck,as the bankruptcy trustee primes large categories of creditors.

References in periodicals archive ?
Martin Nowak, a German eye surgeon and mathematics enthusiast who is one of the project's volunteers, discovered the latest prime using one of his office computers.
Major support for IRS continued as a partnership between the state VR agencies and RSA and, for the first time, universities participated as prime study group coordinators.
Now, a pair of mathematicians offers a proof that in one fell swoop demonstrates that there are infinitely many prime progressions of every finite length.
Studying this wider question simplified the formulas estimating the spacing of primes, and to the team's surprise, the new result about smaller-than-average prime gaps fell out.
This scheme requires a ready-to-use supply of large primes, so it has encouraged mathematicians and computer scientists to seek increasingly efficient ways of identifying prime numbers.
Cameron discovered the record-setting prime using software written by George Woltman, a retired computer programmer in Orlando, Fla.
who keeps his own computers occupied with several prime pursuits.
Nonetheless, primes gradually become scarcer as the numbers get larger.
For example, written out in binary form, a Mersenne number consists of an unbroken string of 1s-3,021,377 of them in the case of the record prime number.