Dictionary of Finance and Investment Terms: prime
prime
Banking: prime rate.
Investments: acronym for Prescribed Right to Income and Maximum Equity. PRIME was a Unit Investment Trust, sponsored by the Americus Shareowner Service Corporation, which separated the income portion of a stock from its appreciation potential. The income-producing portion, called PRIME, and the appreciation potential, called SCORE (an acronym for Special Claim on Residual Equity) together made up a unit share investment trust, known by the acronym USIT. Both PRIME and SCORE were traded on the American Stock Exchange.
This form of unit trust allows investors who want income from a stock to maximize that income, and investors who want capital gains to have increased leverage in achieving those gains.
