share premium


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 dividends to the shareholders, although it may be used to make scrip issues

Accounting dictionary. 2014.

Look at other dictionaries:

  • 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 —    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 …   Big dictionary of business and management

  • share premium — / ʃeə ˌpri:miəm/ noun an amount to be paid above the nominal value of a share in order to buy it …   Dictionary of banking and finance

  • 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

  • share premium account — That part of shareholders funds (shown separately on the balance sheet) formed of the premium paid for new shares above their nominal value. It forms part of a company s non distributable reserves. Related links merger reserve Practical Law… …   Law dictionary

  • share premium account — The account to which any share premium must be credited. 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 off of underwriting… …   Big dictionary of business and management

  • 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 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 share premium account of a company is the capital that a company raises upon issuing shares that is in excess of the nominal value of the shares.For example, a company may issue shares of a nominal value of £1 each at a subscription price of… …   Wikipedia