Pronunciation: (prē'mē-um),[key] —n. 1. a prize, bonus, or award given as an inducement, as to purchase products, enter competitions initiated by business interests, etc.
2. a bonus, gift, or sum additional to price, wages, interest, or the like.
3. Insurance.the amount paid or to be paid by the policyholder for coverage under the contract, usually in periodic installments.
4. Econ.the excess value of one form of money over another of the same nominal value.
5. a sum above the nominal or par value of a thing.
6. the amount paid to the lender of stock by the borrower, typically a short seller.
7. the amount the buyer of a call or put option pays to the seller, quoted in dollars per share of stock.
8. a fee paid for instruction in a trade or profession.
9. a sum additional to the interest paid for the loan of money.
10. at a premium, a. at an unusually high price.
b. in short supply; in demand: Housing in that area is at a premium.
—adj. 1. of exceptional quality or greater value than others of its kind; superior: a wine made of premium grapes. 2. of higher price or cost.
3. of or pertaining to premiums: to work in premium sales.