Glossary
/Premium
What is Premium?
Ever noticed an IPO priced at ₹300 when the face value is just ₹10? That extra ₹290 is the premium. It essentially means the market believes the company is worth significantly more than its basic legal value on paper. You also hear this word when a stock consistently trades above its face value in the secondary market. Companies love charging a heavy premium during bull markets because it brings in massive cash without them having to issue as many shares.
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