Agio

Premium ( agio from Italian = convenience ) is in finance a premium or charge, which may be required in addition to the purchase price for certain types of business. There is a premium to the face value and is usually stated as a percentage.

The opposite of the premium or discount is the discount.

Application

In finance premium is a premium to the face value, which can be agreed upon in the issuance of securities or the issuance of varieties.

For bonds, although is usually an issue at par (100 %) or at a discount, but also the issue of bonds above face value (eg, 105% ) is possible. Premium or discount an effect on the effective interest rate as the nominal interest rate is calculated from the nominal value of the bond.
For the issuance of shares, the premium is the amount by which the issue price of shares whose face value exceeds ( § 272 Section 2 No. 1 HGB). The premium is on stock corporation law explicitly as a case of over Pari emission ( § 9 bs. 2, § 36a para 1 AktG) regulated. It is as part of the issue price in the statute ( § 23 para 2 No. 2 AktG ) and the capital increase in the capital increase resolution ( § 182 para 3 AktG) respecting the form of the notarial record ( § 130 sentence 1 AktG) and in specify the subscription form ( § 185 paragraph 1 sentence 3 No. 2 AktG). The entire premium must be paid to the commercial register ( § 36a, paragraph 1 sentence 2, paragraph 2, sentence 1 AktG ) before the registration of the capital increase.
Sometimes it is also spoken in the sale of varieties of bank customers from premium, more precisely it is, however, an ask price.

A premium is set at stock pursuant to § 272 Section 2 No. 1 HGB in the capital reserve of the Company and is therefore part of shareholders' equity. § 150 AktG provides the premium and other premium -like payments ( § 272 para 2 No. 1 HGB ) to the legal reserve and subjecting a believer protecting capital.

Demarcation

Commission is the commission payable by a bidder at the auction house in addition to the hammer price. The amount of the premium varies and depends on the auction terms. Depending on the auction item may be the buyer's premium of between 15 % and 25 % of the hammer price.

Example

In order to buy a security with a par value of 1,000 euros with a premium of 5%, have 1,050 euros, so 105% of the nominal value, to be paid.

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