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SHORT-TERM INVESTMENTS CO.
PRIME PORTFOLIO
RESOURCE CLASS
Supplement dated October 18, 1996
to the Prospectus dated December 12, 1995
The first paragraph under the caption "Investment Program - Investment
Policies" on page 5 is revised to read in its entirety as follows:
"The Portfolio may invest in a broad range of government, bank
and commercial obligations and taxable municipal securities
that may be available in the money markets. Such obligations
are collectively referred to as "Money Market Obligations" and
include U.S. Treasury obligations, which include Treasury
bills, notes and bonds, and repurchase agreements relating to
such securities. The Portfolio may also engage in certain
investment practices described below. The market values of the
money market instruments held by the Portfolio will be
affected by changes in the yields available on similar
securities. If yields have increased since a security was
purchased, the market value of such security will generally
have decreased. Conversely, if yields have decreased, the
market value of such security will generally have increased."
