# Prime rate (sometimes translated into German as Eckzins)

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- Post ID: 592874
- Modified: 2023-07-25T21:14:11+00:00
- Language: en

## Definition

In the U.S.A. and Canada, a standard interest rate paid by first-class borrowers (companies that have proven to be ideal debtors in the past) to their banks for short-term loans. In the USA, the prime rate has the character of a key interest rate. - If the prime rate rises, companies must consequently pay higher interest rates, which CETERIS PARIBUS depresses earning power. As a result, the companies' share prices usually fall. - A falling prime rate usually has the opposite, positive effect on the stock market - see prime rate, prime rate, interest rate pass-through. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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