Control premium
A control premium is an amount that a buyer is sometimes willing to pay over the current market price of a publicly traded company in order to acquire a controlling share in that company. If the market perceives that a public company's profit and cash flow is not being maximized, capital structure is not optimal, or other factors that can be changed are impacting the company's share == Overview of concept == Transactions involving small blocks of shares in public companies occur regularly and serve to establish the market price per share of company stock.