„Premium“

What does Premium stand for?

1. A bounty or bonus above a regular price, paid as an incentive to do something.

2. The price of insurance protection for a specified risk for a specified period of time.

Comment: Meaning numbered 1 above indicates that one meaning of “Premium” is: Something in addition to the regular price. In meaning numbered 2 “Premium” is the price itself.

3. A “give-away” – a reward or prize.

Source:

Downes, J., Goodman, J.E. (2007). Dictionary of Finance and Investment Terms. Barron’s Educational Series.

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