The extra paid above the face value of a share. Example: if a company issues its shares at $10 each, and later on you buy 1 share on the open market at $12, you will be paying a share premium of $2
See Paid in surplus. Français: Prime sur action Español: Share premium
Under the Companies Act 1985, if the amount paid to the company on subscription for the issue of shares is greater than their nominal value, the surplus is called share premium. The aggregate of the share premium is transferred in the company's accounts to an account called the "share premium account". It may be used to pay bonus shares issued to members or in writing-off preliminary expenses or the expenses of a new issue. It can also be used to provide the premium on redemption of debentures.
The amount paid to a company by shareholders, in cash or other consideration, over and above the amount the nominal value of the shares issued to them.