Definition of: premium

(prē′mē·əm) noun
1. A reward or prize for a superior performance or production in competition.
2. A price paid for a loan; a sum offered or given to secure a loan, either a sum in addition to interest, a bonus, or the interest itself.
3. The rate or price at which stocks, shares, or money are valued in excess of their nominal or par value: bank shares at a premium of five percent.
4. The amount paid for insurance, as admission fees, annual dues, periodical payments, etc., according to the kind of insurance secured.
5. Any object offered free to those who purchase goods to a certain value, as a set of books given free as an inducement to subscribe to a magazine.
6. A fee for instruction in a trade or a profession. See synonyms under SUBSIDY.
—at a premium Above par; hence, valuable and in demand. [<L praemium, ult. <prae- before + emere buy]