PREMIUM

1. a sum of money or bonus paid in addition to a regular price, such as a premium paid to a craftsman for excellent work. 2. the amount paid, sometimes in addition to the interest, to obtain a loan. 3. the amount paid, often in installments, for an insurance policy. 4. in merchandising, something offered free or at a greatly reduced price as an inducement to buy something else in the same line at the regular price. -5. the amount paid for an option, contract or franchise. 6. the amount by which a stock or bond may sell above its par or face value. 7. a charge made when a stock is borrowed to make delivery on a short sale.