In stock issuance, there are a number of factors that affect the amount of stock premium. By recognizing these factors, you can find out how the value of shares above the nominal price is formed. The following are some factors that play a role in determining stock premium that are important to know :

• Company performance : Companies with solid performance and bright future prospects generally have higher stock premiums because investors see the potential for greater profits.
• Market conditions : Markets that are in a positive trend tend to drive up stock prices, thereby increasing stock premiums.
• Dividend policy : Companies that offer high dividends usually have lower stock premiums because most of the profits have been distributed in the form of dividends.
• Number of shares issued : The more shares issued by a company, the smaller the potential for the premium per share because a larger offering can depress stock prices.