premium

Definition 1

The amount by which a bond or stock sells above its par value.

Definition 2

The amount by which a closed-end fund's market price exceeds the value of its holdings.

Definition 3

An additional cost above the normal cost.

Definition 4

The amount that the buyer of an option pays to the seller.

Definition 5

A regular periodic payment for an insurance policy, here also called insurance premium.

Definition 6

The amount by which the first trading of an IPO exceeds its offering price. opposite of discount.

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Related Terms

market price, loading, risk, risk premium, equity risk premium, conversion premium, deliverable grades, single-premium life insurance, waiver of premium, copay

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