When a company sells stock at an amount greater then par value,the excess amount is referred to as:

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When a company sells stock at an amount greater than par value, the excess amount is called a premium. It is basically the amount at which the shares are sold above the face value or par value. This premium is typically seen as a sign of a healthy company and allows the company to raise more capital than what would be possible by just selling shares at par value. The premium amount is recorded in a separate account called "Share Premium" or "Paid-in Capital in Excess of Par Value".

When a Company Sells Stock at an Amount Greater Then