With Agio, a premium or premium is applied in the financial sector, which is charged in addition to the purchase price or the nominal value. The premium is expressed as a percentage and is used primarily for trading in securities, foreign exchange / variety and lending business. For the purchase of a share fund, the investor has to pay an additional premium. The opposite of agio is the disagio.
DIFFERENCE BETWEEN BANKWARES AND STOCK EXCHANGE
In the case of trading with securities, Agio is therefore an additional percentage amount that the buyer has to pay. However, the seller must use the capital from the premium as a reserve for his company, in which the shareholder has bought shares. As a result, it is part of the equity capital of the company.
In the banking sector, on the other hand, the percentage mark-up, for example, of a fund, is assessed and justified as advisory costs and compensation for the bank or consultant. Here, the difference between purchase price and parity is the premium.
In share law, Agio is expressly defined as a case of surplus issuance. Pari is an issue if the nominal value of a share corresponds to its exchange rate. If the nominal value is larger than the stock market price, it is said to be a non-paris issue or disagio, but this is forbidden.
WHO FIXES THE AGIO AMOUNT?
The amount of the premium is different for each investment product and is determined by the investment company. Banks or fund managers are different from companies that sell shares on the stock exchange.