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 periodicals archive ?
Henan Sino-agri Fuan, another subsidiary of Sino-agri Machinery, is principally engaged in the business of the manufacture and sale of agricultural machinery and storage equipment as well as the provision of maintenance services.
This loss was principally due to the Company reassessment of its mortgage loans held for sale portfolio in light of the more stringent requirements of the U.
The positive variance in trading activities during the first half of 2006, compared to the first half of 2005, was principally due to net gains on the Company's derivative instruments of $25.
Future increases in these categories are planned to be modest for the remainder of 2006 and into 2007, with additional expenditures principally related to the expansion of its specialty lending efforts, and commercial deposit and cash management generation abilities.
Morrison Cohen represents these institutions and other financing sources principally in middle market transactions and investments.
High Net Worth Individuals: Morrison Cohen's individual client services group, which includes attorneys in its family law, trusts & estates, tax, compensation and benefits/ERISA, and real estate departments, principally serves high net worth individuals in connection with their varied financial, family and other personal affairs.
The increase in G&A expense is due principally to legal expense to defend the counterclaims against our intellectual property and matters related to the protection of our intellectual property.
Initially, the product pipeline is principally focused on increasing the efficacy and decreasing the toxicity of approved chemotherapy drugs.
The new technologies are principally liquid-crystal displays (LCDs), and plasma displays, as well as microdisplay-based rear-projection TVs (RPTV).