premium

premium
1) The consideration payable for a contract of insurance or life assurance.
2) An amount in excess of the nominal value of a share, bond, or other security.
3) An amount in excess of the issue price of a share or other security. When dealings open for a new issue of shares, for instance, it may be said that the market price will be at a premium over the issue price (see stag).
4) The price paid by a buyer of an option contract to the seller for the right to exercise the option. In general, the premium asked for an option consists of two components, its intrinsic value and its time value
5) The difference between the spot price for a commodity or currency and the forward price.
6) A bonus given to bank customers as an inducement to open an account.

Big dictionary of business and management. 2014.

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  • premium — pre·mi·um / prē mē əm/ n 1: the difference between the face value or par value of a security and its market price when the latter is greater compare discount 2: the price paid for an insurance contract equal to the cost per unit times the number… …   Law dictionary

  • premium — [ premjɔm ] n. m. • XXe; mot lat. « butin » ♦ Fin. Prime versée pour une opération sur un marché à terme. ⇒ option. On écrirait mieux prémium. ● premium nom masculin (latin praemium, butin) Somme payée au vendeur d une option d achat (ou de… …   Encyclopédie Universelle

  • premium — premium, prize, award, reward, meed, guerdon, bounty, bonus are comparable when they mean something which is bestowed upon a person as a recompense for cooperation, greater effort, superior merit, or supremacy in competition. Premium is applied… …   New Dictionary of Synonyms

  • Premium — Pre mi*um, n.; pl. {Premiums}. [L. praemium, originally, what one has got before or better than others; prae before + emere to take, buy. See {Redeem}.] 1. A reward or recompense; a prize to be won by being before another, or others, in a… …   The Collaborative International Dictionary of English

  • premium — ► NOUN (pl. premiums) 1) an amount paid for a contract of insurance. 2) a sum added to an ordinary price or other payment. 3) (before another noun ) (of a commodity) superior and more expensive. ● at a premium Cf. ↑at a premium …   English terms dictionary

  • premium — [prē′mē əm] n. pl. premiums [L praemium, reward, recompense < prae , before + emere, to take: see PRE & REDEEM] 1. a reward or prize, esp. one offered free or at a special low price as an added inducement to buy or do something; bonus 2. an… …   English World dictionary

  • premium — [adj] excellent choice, exceptional, prime, select, selected, superior; concept 574 Ant. inferior, low, low class, poor premium [n] bonus, prize appreciation, boon, bounty, carrot*, dividend, extra, fee*, gravy*, guerdon, meed, percentage, perk* …   New thesaurus

  • Premĭum — (engl., abgekürzt pm.), Prämie, auf englischen Kurszetteln im Gegensatz zum damno oder discount (abgekürzt dis.) soviel wie Aufgeld, Überschuß über den Paribetrag …   Meyers Großes Konversations-Lexikon

  • premium — (n.) c.1600, reward given for a specific act, from L. praemium reward, profit derived from booty, from prae before (see PRE (Cf. pre )) + emere to buy, originally to take (see EXEMPT (Cf. exempt)). Insurance sense is 1660s, from It. premio.… …   Etymology dictionary

  • premium — consideration paid for an insurance policy. Glossary of Business Terms (1) The additional payment allowed by exchange regulation for delivery of higher than required standards or grades of a commodity against a futures contract. (2) In speaking… …   Financial and business terms

  • Premium — (1) Amount paid for a bond above the par value. (2) The price of an option contract; also, in futures trading, the amount the futures price exceeds the price of the spot commodity. Related: inverted market premium payback period. Also called… …   Financial and business terms

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