Premium

Definition of 'Premium'

1) Upward difference between issue price of a share or other investment and its market value.

2) The amount paid for an insurance policy, which can be paid monthly or annualy.

3) An additional amount paid to lenders above interest rates to compensate for the level of risk involved.

4) A "premium bond" is a government security issued in the UK which gives monthly "prizes" instead of interest.

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