principal

Principal

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

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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).

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

Principal

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

See Amortization.

The Mortgage Encyclopedia. Copyright © 2004 by Jack Guttentag. Used with permission of The McGraw-Hill Companies, Inc.