amount paid for share above declared value the amount payable for a share above its nominal value. Most shares are issued at a premium to their nominal value. Share premiums are credited to the company's share premium account.
Back on September 15, 2008, when AIG’s share price plummeted by 70%, genuine fears were raised that the insurance sector would imitate the banking sector in facing its own financial woes. So far, these fears have proved unfounded.
By James White
Investors’ fear of heightened volatility and lower returns has led to increased interest in more efficient approaches to capturing equity risk premium, including strategies that target low-volatility stocks
By Erik Gosule
by agreeing to secure the distribution of the new shares in exchange for a premium. Each stock exchange will have its own set of governing rules which must be thoroughly respected. The advisory lawyers and bankers will have to draw up a rigorous set of documents including a prospectus. All business details
Definitions of ’share premium’ and meaning of ’share premium’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’share premium’ and other financial terms with our online QFINANCE Financial Dictionary.