Premium. The amount paid in excess of the par (face) value.  When a stock, for instance, is
selling at a premium the premium is the amount it brings beyond its par or face value.  When a
stock is lending at a premium (see Borrowing and lending stocks) the premium is the amount paid
by the borrower of the stock to the lender of it for the use of it. The purpose, usually, for which a
stock is borrowed is to enable the borrower, who has sold it short (sold stock he did not possess),
to make delivery to the purchaser.