principal

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Principal

(1) The total amount of money being borrowed or lent. (2) The party affected by agent decisions in a principal-agent relationship.

Principal

1. A person or organization party to a transaction or event.

2. The amount that one borrows. For example, if one borrows $100,000, the principal amount is $100,000. Interest is calculated over the principal (and often over unpaid interest that accumulates).

principal

1. The face amount of a bond. Once a bond has been issued, it may sell at more or less than its principal amount, depending upon changes in interest rates and the riskiness of the security. At maturity, however, the bond will be redeemed for its principal amount. Also called principal amount.
2. Funds put up by an investor.
3. The person who owns or takes delivery of an asset in a trade. For example, an investor is the principal for whom a broker executes a trade.

Principal.

Principal can refer to an amount of money you invest, the face amount of a bond, or the balance you owe on a debt, distinct from the finance charges you pay to borrow.

A principal is also a person for whom a broker carries out a trade, or a person who executes a trade on his or her own behalf.

principal

  1. a sum of money or capital which can earn INTEREST.
  2. the owner of a firm or other assets who assigns the management of the firm or assets to an AGENT who acts on behalf of the principal. See PRINCIPAL-AGENT THEORY, AGENCY COST.

principal

  1. a sum of money or capital that can earn INTEREST.
  2. the owner of a firm or other assets who assigns the management of the firm or assets to an AGENT who acts on behalf of the principal. See PRINCIPAL-AGENT THEORY, AGENCY COST.

principal

(1) One who has permitted or instructed another—called an agent—to act on his or her behalf and according to his or her instructions. (2) One who is primarily liable for an obligation, as opposed to a surety,who is secondarily liable.(3) With a promissory note,the principal is the unpaid balance of the funds borrowed,not including any interest or other fees.(4) In a trust,the property of the trust that generates income.Principal can be real property or personal property.

Principal

The portion of the monthly payment that is used to reduce the loan balance.

See Amortization.

References in classic literature ?
Wickfield, being so weak and helpless in his hands as to pay you, afterwards, several sums of interest on a pretended principal which he knew did not exist, made himself, unhappily, a party to the fraud.
They don't mind what they ask of me, the subordinate; but you'll never catch 'em asking any questions of my principal.
The other two started and shrank farther back into the shadow of the wall, for the sturdy figure of their runaway principal could indeed be seen shuffling along in the twilight in front, a bag in each hand.
In like manner, did young Ralph Nickleby avoid all those minute and intricate calculations of odd days, which nobody who has worked sums in simple-interest can fail to have found most embarrassing, by establishing the one general rule that all sums of principal and interest should be paid on pocket-money day, that is to say, on Saturday: and that whether a loan were contracted on the Monday, or on the Friday, the amount of interest should be, in both cases, the same.
A shilling passes; and, in that spirit of confidence which should pervade all business transactions between principals of honour, this piece of business is considered done.
Though some of the numerous descendants of this peculiar pair were reclaimed from their lawless and semi-barbarous lives, the principals of the family, themselves, were never heard of more.
Next moment they quietly eyed each other, as if they, the principals, had had no part in that expressive transaction.
We may place our men, then, I think,' observed the officer, with as much indifference as if the principals were chess-men, and the seconds players.
My principal said he was not feeling well, and would leave that and the other details of the proposed meeting to me.
n' do without, 'n' plan to git along on our interest money somehow, but we won't break into our principal, whatever happens.
His opponent was the son of his principal warder, and was so imprudent as to give the challenge to this barter of buffets.
But I should have mentioned, that before the principal person began his oration, he cried out three times, LANGRO DEHUL SAN (these words and the former were afterwards repeated and explained to me); whereupon, immediately, about fifty of the inhabitants came and cut the strings that fastened the left side of my head, which gave me the liberty of turning it to the right, and of observing the person and gesture of him that was to speak.