At A Premium

Dictionary Says

Definition of 'At A Premium'


The sale of an asset or item at a price significantly above the original purchase price due to high demand, rather than appreciation. At a premium, when used to refer to the cost of an asset, can indicate its increased price and limited supply. Changes in market interest rates, superior performance and limited supply, are examples of factors that can cause an investment to be in high demand and to trade at a premium.

Investopedia Says

Investopedia explains 'At A Premium'


For example, sold-out concert or sporting-event tickets may be sold at a premium, at a price above their face value, in the secondary market. A bond that is paying a higher rate of interest than current market rates could also be sold at a premium to its face value, because investors will pay more to earn more interest. In the opposite situation, a bond that pays interest below current market rates would be sold at a discount to its face value.
comments powered by Disqus
Hot Definitions
  1. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
  2. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
  3. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  4. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  5. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  6. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
Trading Center