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 ?
The findings show that the work of the secondary principal is complex and requires a great deal of commitment and talent.
While the agent is a fiduciary subject to strict standards of care and honesty, often there is no official or government body monitoring the agent's actions, ,Thus, a principal must be confident in the selection, and should insist on the agent keeping adequate records of all transactions conducted on the principal's behalf.
Chris Calos joined The Principal last June as vice president of the company's National Accounts Division where he provided leadership and focus to the self funded health insurance segment.
More than ever before, this survey suggests that employers and employees want the same thing - employers want a healthier workplace and employees want to be healthy," said Jerry Ripperger, director for consumer health for the Principal Financial Group.
The Principal 10 Best Companies--2006 face the same constraints as other employers--tough competition for the best employees, tight budgets and the ever-present need to produce more with fewer people," explains Renee Schaaf, vice president, the Principal Financial Group.
Enhanced dental benefits from The Principal are designed to prevent and detect periodontal disease.
The combination of Principal Funds and WM Funds marks a new era for The Principal with the virtually unmatched formula of world-class investment management, comprehensive asset allocation solutions, and retirement investing expertise," said Ralph Eucher, president, Principal Funds.
Principal SUL Protector allows policyholders to obtain the amount of insurance they need today, and as insurance needs increase, they can add additional coverage to the policy.
Mundt, president and chief investment officer of Principal Real Estate Investors.
The Principal Financial Group([R])(The Principal ([R]))2 is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance, and banking through its diverse family of financial services companies and national network of financial professionals.
We are excited about the opportunity to partner with The Principal to bring the added value of dental HMO benefits to their plan offerings," commented Steve Baker, president and chief operating officer of SafeGuard.
The combination of CIMB-Principal with SBB Mutual and SBB Asset Management creates an asset management powerhouse, with a 4,500 person agency force, a strong retail banking distribution network, complementary investment strengths in fixed income and equities, and a strong combined book of institutional asset management mandates," said Rex Auyeung, senior vice president - Asia operations of Principal International.

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