premium

views updated Jun 11 2018

pre·mi·um / ˈprēmēəm/ • n. (pl. -ums) 1. an amount to be paid for an insurance policy.2. a sum added to an ordinary price or charge: customers are reluctant to pay a premium for organic fruit. ∎  a sum added to interest or wages; a bonus. ∎  [as adj.] relating to or denoting a commodity or product of superior quality and therefore a higher price: premium beers. ∎  Stock Market the amount by which the price of a share or other security exceeds its issue price, its nominal value, or the value of the assets it represents: the fund has traded at a premium of 12%.3. something given as a reward, prize, or incentive: the Society of Arts awarded him a premium.PHRASES: at a premium1. scarce and in demand: space was at a premium.2. above the usual or nominal price: books with pristine dustjackets are less common and sell at a premium.put (or place) a premium on regard or treat as particularly valuable or important: he put a premium on peace and stability.

Premium

views updated May 18 2018

PREMIUM

A reward for an act done.

A bounty or bonus; a consideration given to invite a loan or a bargain, as the consideration paid to the assignor by the assignee of a lease, or to the transferer by the transferee of shares of stock, etc.

In granting a lease, part of the rent is sometimes capitalized and paid in a lump sum at the time the lease is granted. This is called a premium.

The sum paid or agreed to be paid by an insured to the underwriter (insurer) as the consideration for the insurance. The price for insurance protection for a specified period of exposure.

premium

views updated Jun 08 2018

premium reward, prize; sum to be paid in an insurance policy, etc. XVII; fee for instruction in a trade, etc. XVIII. — L. præmium booty, reward, f. præ- PRE- + emere buy, orig. take.