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share premium account

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Financial Dictionary

Share Premium Account

Usually found on the balance sheet, this is the account to which the amount of money paid (or promised to be paid) by a shareholder for a share is credited to, only if the shareholder paid more than the cost of the share.

Investopedia Commentary

The share premium account may be used to issue bonus shares, write-off equity related expenses like underwriting costs, etc.

See also: Balance Sheet, Premium, Share

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