premium

premium

Premium is the difference between the par value of a security at maturity and the current market value, when current market value is higher than the nominal value.

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Part of Speech: noun
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Industry/Domain: Financial services
Category: Stocks & securities
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above par

Financial services; Stocks &securities

If bonds are re-sold on the secondary market, and if interest rates are lower that the bond's coupon rate, the bond will be sold at a premium, or above par.

P/E ratio

Financial services; Stocks &securities

The ratio of a company's current price per share and average earnings per share. The former is divided by the latter. A high ratio suggests high growth potential in the future.

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