PREMIUM

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Definitions

1. a sum of money or bonus paid in addition to a regular price, such as a premium paid to a craftsman for excellent work.

2. the amount paid, sometimes in addition to the interest, to obtain a loan.

3. the amount paid, often in installments, for an insurance policy.

4. in merchandising, something offered free or at a greatly reduced price as an inducement to buy something else in the same line at the regular price. -5. the amount paid for an option, contract or franchise.

5. the amount by which a stock or bond may sell above its par or face value.

6. a charge made when a stock is borrowed to make delivery on a short sale.