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 ?
The reputation earned by Washington in this battle was the principal cause of his being selected to command the American armies at a later day.
The hostile disposition of the savages, and their allies, caused General Clark, the commandant at the Falls of the Ohio, immediately to begin an expedition with his own regiment, and the armed force of the country, against Pecaway, the principal town of the Shawanese, on a branch of Great Miami, which he finished with great success, took seventeen scalps, and burnt the town to ashes, with the loss of seventeen men.
The lieutenant-governor, although his visit was one of the anticipated glories of the day, had alighted from his horse, and assisted his lady from her side-saddle, and crossed the Colonel's threshold, without other greeting than that of the principal domestic.
I had heard something of both Captain Peleg and his unaccountable old crony Bildad; how that they being the principal proprietors of the Pequod, therefore the other and more inconsiderable and scattered owners, left nearly the whole management of the ship's affairs to these two.
At this, above the salt, sat the visiting nobles and the grown members of their families, of both sexes, -- the resident Court, in effect -- sixty-one per- sons; below the salt sat minor officers of the house- hold, with their principal subordinates: altogether a hundred and eighteen persons sitting, and about as many liveried servants standing behind their chairs, or serving in one capacity or another.
A year or two ago, the principal Heidelberg expert was a big Kentuckian; he was invited to the various universities and left a wake of victory behind him all about Germany; but at last a little student in Strasburg defeated him.
When the place couldn't hold no more, the duke he quit tending door and went around the back way and come on to the stage and stood up before the curtain and made a little speech, and praised up this tragedy, and said it was the most thrillingest one that ever was; and so he went on a- bragging about the tragedy, and about Edmund Kean the Elder, which was to play the main principal part in it; and at last when he'd got everybody's expecta- tions up high enough, he rolled up the curtain, and the next minute the king come a-prancing out on all fours, naked; and he was painted all over, ring- streaked-and-striped, all sorts of colors, as splendid as a rainbow.
Adam and Eve had many advantages, but the principal one was, that they escaped teething.
But the pathos, the lesson, the moral of the great spectacle were lost upon the boy; he only thought of the conspicuous- ness of the principal character before the on-looking nations; his face lit with the thought, and he said to himself that he wished he could be that child, if it was a tame lion.
These seats of learning were neither better nor worse than others of their kind, but differed much in efficiency, according as the principal who chanced to be at the head was a man of power and inspiration or the reverse.
If you are unable to make up your quantum, my boy, you had better address yourself to a principal; there are plenty of principals in the profession, you know, and what is not worth the while of one, may be worth the while of another; that's my recommendation to you, speaking as a subordinate.
His opponent was the son of his principal warder, and was so imprudent as to give the challenge to this barter of buffets.

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