At A Premium

At A Premium

The sale of an asset or item at a price significantly above the original purchase price due to high demand, rather than appreciation. At a premium, when used to refer to the cost of an asset, can indicate its increased price and limited supply. Changes in market interest rates, superior performance and limited supply, are examples of factors that can cause an investment to be in high demand and to trade at a premium.

For example, sold-out concert or sporting-event tickets may be sold at a premium, at a price above their face value, in the secondary market. A bond that is paying a higher rate of interest than current market rates could also be sold at a premium to its face value, because investors will pay more to earn more interest. In the opposite situation, a bond that pays interest below current market rates would be sold at a discount to its face value.


Investment dictionary. . 2012.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • Premium-rate telephone number — Premium rate telephone numbers are telephone numbers for telephone calls during which certain services are provided, and for which prices higher than normal are charged. Unlike a normal call, part of the call charge is paid to the service… …   Wikipedia

  • Premium Financing — involves the lending of funds to a person or company to cover the cost of an insurance premium. Premium finance loans are often provided by third party finance entity known as a Premium Financing Company ; however insurance companies and… …   Wikipedia

  • Premium economy — is a travel class offered on some airlines, taking one of two forms:* a simple upgrade to the Economy class provided as a free upgrade to premium members of frequent flyer program and passengers flying full fare economy, normally as a section of… …   Wikipedia

  • Premium Aerotec — Rechtsform GmbH Gründung 1. Januar 2009 Sitz …   Deutsch Wikipedia

  • 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 listing — United Kingdom From 6 April 2010, the meaning of this term varies: • In relation to equity shares (other than those of a closed ended investment fund (closed ended funds) or of an open ended investment company), a listing where the issuer is… …   Law dictionary

  • Premium Records — Aktive Jahre 1950 1951 Gründer Lee Egalnick und Lew Simpkins Sitz Chicago Genre(s) Blues, Rhythm and Blues, Jazz Premium Records war ein US amerikanisches Plattenlabel in den Bereichen Blues …   Deutsch Wikipedia

  • Premium AEROTEC — Unternehmensform GmbH Gründung 1. Januar 2009 …   Deutsch Wikipedia

  • Premium television — (sometimes pay television in North America) generally refers to a class of commercial free television services which are available for subscription through cable and satellite television for fees much higher than traditional, packaged cable… …   Wikipedia

  • 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

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”