The word agio comes from Italian and means “convenience”. In the financial world, agio is referred to as a premium or premium.
The premium is in addition to the purchase price or the price value. A premium is only charged once and is usually stated as a percentage of the nominal value. A premium exists for shares, but also in foreign exchange transactions or in the purchase of non-cash investments.
The amount of a premium depends on various factors. It is in the hands of the provider. When shares are issued, the premium usually compensates for the difference between the market value of the share and the reportedequity.
The opposite of a premium is a discount.
