Meaning of Goodwill (What it is, Concept and Definition)

Agio is the term used to name the excess amount that is charged about a particular commodity or financial transaction, also known as swear or profit, depending on the situation in which you are employed.

Quite common in financial language, the word goodwill is present daily in the lives of citizens, being one of the main factors responsible for the indebtedness of Brazilian families, for example.

When someone buys a product in installments, they usually charge monthly interest on each installment, causing a difference between the cash value of the merchandise and the total price paid at the end of the installment. This difference between the values ​​is called a premium, that is, the additional money that was charged for the product in the form of interest.

Another didactic example of how the premium can be applied can be seen in the auction processes. When a certain piece goes to auction, it is purchased and offered for a minimum price. When this value is exceeded, the entire remaining amount is considered a premium on the product. In this case, the term goodwill is related to profit.

Goodwill can still be the difference between the currency of one country and another.

premium and discount

while the agio it's the additional amount that is paid on the value of a commodity or financial transaction, the discount it is when a certain product is purchased below the market price.

In other words, the discount is the difference between the market value and the purchase price of the product, when this is lower than the market value.

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