a b c d e f g h i j k l m n o p q r s t u v w y z search

TeachMeFinance.com - explain Premium Premium -- an amount paid on a regular schedule by a policyholder that maintains insurance coverage. another definition... premium -- (1) the amount, often stated as a percentage, paid in addition to the face value of a note or bond. (2) a fee charged for the granting of a loan. (3) the price paid for an insurance contract. (4) a product given free or sold at discount, offered as an inducement to the public to open or add to a savings account, or to purchase other specified products or services. another definition... Premium -- 1. A bounty or bonus above a regular price, paid as an incentive to do something. 2. The price of insurance protection for a specified risk for a specified period of time. Comment: Meaning numbered 1 above indicates that one meaning of "Premium" is: Something in addition to the regular price. In meaning numbered 2 "Premium" is the price itself. 3. A "give-away" - a reward or prize. historic definition... Premium -- The amount paid in excess of the par (face) value. When a stock, for instance, is selling at a premium the premium is the amount it brings beyond its par or face value. When a stock is lending at a premium (see Borrowing and lending stocks ) the premium is the amount paid by the borrower of the stock to the lender of it for the use of it. The purpose, usually, for which a stock is borrowed is to enable the borrower, who has sold it short (sold stock he did not possess), to make delivery to the purchaser. In Great Britain when a stock or other security is at a premium the premium is reckoned at so much in the pound on shares and at a percentage on stock or bonds . See Percentage. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.