The difference between the actual price and excess price of a share is called as ____________.

A. Discount

B. Forfeiture

C. Premium

D. Surplus

Answer: Option C

Solution(By Examveda Team)

The difference between the actual price and excess price of a share is called as Premium. The share premium account represents the difference between the par value of the shares issued and the subscription or issue price. Share premium account may also be known as additional paid-in capital and can also be called paid-in capital in excess of par value.