Share premium

Share premium,

Definition of Share premium:

  1. The amount by which the amount received by a company for a stock issue exceeds its face value.

  2. Excess amount received by a firm over the par value of its shares. This amount forms a part of the non-distributable reserves of the firm which usually can be used only for purposes specified under corporate legislation. Also called paid-in surplus.

How to use Share premium in a sentence?

  1. Reduction of share capital or share premium account.

Meaning of Share premium & Share premium Definition