Overkurs

Overkurs is a financial term describing the amount by which the price of a security or financial instrument exceeds its nominal or par value. It is most commonly applied to the issue of shares and to the issue of bonds, and is used to indicate a premium paid by investors beyond the stated value.

In equity issue contexts, overkurs occurs when a company issues new shares at a price higher than the shares’ nominal value. The difference between the issue price and the nominal value is called the share premium or overkurs. This amount is typically recorded in equity, increasing paid-in capital, and is generally not treated as operating revenue. The funds may be used to strengthen capital, support future issuances, or fund other permissible investments, depending on national rules.

In debt instruments, overkurs refers to the premium above par at which bonds or other notes are issued. The premium is included in the instrument’s carrying amount and is amortized over the life of the debt, reducing the effective interest expense. At maturity, the issuer repays the par value, and any unamortized premium is recognized at that time.

The accounting and tax treatment of overkurs vary by jurisdiction and accounting standards. For investors, the premium can affect the tax basis of the security and the calculation of capital gains upon sale; in some cases it is treated as part of paid-in capital rather than income.

Relation to underkurs: the opposite concept is underkurs (discount), when a security is issued below its nominal value.