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Investments glossary

Premium


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Quotes of the day:

Love cannot endure indifference. It needs to be wanted. Like a lamp, it needs to be fed out of the oil of another\'s heart, or its flame burns low.

— Henry Ward Beecher

Premium has multiple meanings in finance, with the first being the total cost to buy an option. A premium is also the difference between the price paid for a fixed-income security and the security’s face amount at issue. Finally, premium is also the specified amount of payment required periodically by an insurer to provide coverage under a given insurance plan for a defined period of time.

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