# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Premium

The amount by which a bond or preferred stock may sell above its face value.

In new issues of stock, it is the amount by which the trading price of the shares exceeds the offering price.

Regarding bonds, it is the amount by which a bond sells above its face value. For example, a bond that has a face value of $1000 would sell at a $200 premium when it costs $1,200 (see discount).

Sponsors Center
Sponsored Links