share issued at a premium


share issued at a premium
A share issued at a price (the issue price) above its par value. The premium is the difference between the issue price and the par value. Except in special circumstances, the premium must be credited to a share premium account.
See also: share premium

Accounting dictionary. 2014.

Look at other dictionaries:

  • share premium account — Part of shareholders funds in a company s balance sheet. Arises when shares are issued at a premium to their nominal value. For example, if shares with a nominal value of 100p are issued at a price of 150p, the share capital of the company will… …   Financial and business terms

  • share premium account — The account to which the premium must be credited for shares issued at a premium. The balance on the share premium account may be used for specified purposes: • the issue of bonus shares; • the writing off of preliminary expenses; • the writing… …   Accounting dictionary

  • 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… …   Law dictionary

  • share premium accounts — 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… …   Law dictionary

  • issued shares — Under the Companies Act 1985 shares may be issued by the company to shareholders in return for cash or other value equal to or greater than its nominal value. The authorised share capital shows the number and nominal value of shares that are… …   Law dictionary

  • share capital — Under the Companies Act 1985 shares may be issued by the company to shareholders in return for cash or other value equal to or greater than its nominal value. Shares in the authorised share capital are available to be issued. The issued share… …   Law dictionary

  • Issued share capital — The issued share capital of a company is the total nominal value of the shares of a company which have been issued to shareholders and which remain outstanding (ie. have not been redeemed or repurchased to be held in treasury). These shares,… …   Wikipedia

  • Share Premium —    The market value of shares in excess of their par value. * * * share premium UK US noun [C] FINANCE ► the extra value of a share in relation to its value when it was issued: »The original nominal value plus any share premium returned to the… …   Financial and business terms

  • share premium — The amount payable for shares in a company and issued by the company itself in excess of their nominal value (see nominal price). Share premiums received by a company must be credited to a share premium account, which cannot be used for paying… …   Accounting dictionary

  • share premium — The amount payable for shares in a company and issued by the company itself in excess of their nominal value (see nominal price). Share premiums received by a company must be credited to a share premium account …   Big dictionary of business and management