Difference between revisions of "Premium"
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According to [[College Accounting: A Practical Approach by Slater (13th edition)]], | According to [[College Accounting: A Practical Approach by Slater (13th edition)]], | ||
:[[Premium]]. A term that records the sale of stock at more than par value. In this book we use the account Paid-In Capital in Excess of Par Value to record the premium received. | :[[Premium]]. A term that records the sale of stock at more than par value. In this book we use the account Paid-In Capital in Excess of Par Value to record the premium received. | ||
| + | According to the [[Strategic Management by David and David (15th edition)]], | ||
| + | :[[Premium]]. If an acquiring firm pays more for another firm than that firm's stock price times its # of shares of stock outstanding (book value or market value), then the overage is called a premium. | ||
==Related concepts== | ==Related concepts== | ||
*[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]]. | *[[Accounting]] (alternatively known as [[accountancy]]) is management of [[financial data]], information, and knowledge about [[financial transaction]]s of [[legal entity|legal entiti]]es. [[Accountancy]] tends to include [[bookkeeping]] and, depending on a particilar enterprise, may also include [[quatitative analysis]] of [[financial data]] in the [[bookkeeping system]] and/or [[business intelligence]]. | ||
| − | ==Related | + | ==Related lectures== |
*[[Corporate Accounting]]. | *[[Corporate Accounting]]. | ||
| − | [[Category: Accounting]][[Category: Articles]] | + | [[Category: American Accounting]][[Category: Articles]][[Category: Strategic Management]] |
Latest revision as of 21:34, 16 July 2020
Premium is a term that records the sale of stock at more than par value. In this book we use the account Paid-In Capital in Excess of Par Value to record the premium received.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Premium. A term that records the sale of stock at more than par value. In this book we use the account Paid-In Capital in Excess of Par Value to record the premium received.
According to the Strategic Management by David and David (15th edition),
- Premium. If an acquiring firm pays more for another firm than that firm's stock price times its # of shares of stock outstanding (book value or market value), then the overage is called a premium.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
