share premium

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Also found in: Dictionary, Financial.
Related to share premiums: Capital surplus, Additional Paid In Capital

share premium

the excess of the issue price of a share over its nominal value. A company's share premium account exists for certain defined purposes, namely:
  1. (i) to issue fully paid bonus shares;
  2. (ii) to write off preliminary expenses;
  3. (iii) to write off the expenses of, or any discount allowed on, any issue of shares or debentures;
  4. (iv) to provide for any premium payable on the redemption of debentures.
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References in periodicals archive ?
A considerable amount of listed shares are held by UK pension funds, and the inflated share premiums gained will help bolster these schemes significantly.
In addition, Fitch continues to hold the view that captive reinsurance relationships share premiums disproportionately to the risk assumed.