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Premium

For a stock, a premium is the amount for which it sells above its intrinsic value.

In the world of finance, there exists a concept known as "premium." This term represents the additional amount of money that an investor is willing to pay in order to acquire a particular asset. Specifically, in the case of bonds, a premium is the price that exceeds the bond's par value. On the other hand, when it comes to stocks, a premium reflects the price that surpasses the stock's intrinsic value.

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