Investopedia

Continue to Site »

Principal

Filed Under »
Dictionary Says

Definition of 'Principal'

1. The amount borrowed or the amount still owed on a loan, separate from interest.

2. The original amount invested, separate from earnings.

3. The face value of a bond.

4. The owner of a private company.

5. The main party to a transaction, acting as either a buyer or seller for his/her own account and risk.
Investopedia Says

Investopedia explains 'Principal'

Be sure to take into account the context in which this term is used, as the exact meaning of the term has many variations.

Also referred to as "corpus."

Articles Of Interest

  1.

    What The Series 24 Exam Won't Teach You

    Can you handle being the judge and jury in your firm? Find out what surprising tasks a job as a principal entails.

  2. How To Read Loan And Credit Card Agreements

    The devil is always in the details! Find out what you're signing yourself up for.

  3. The Hidden Costs Of Home Ownership

    Mortgage lenders don't factor the extra costs into your loan amount. Make sure you save for the "little" things.

  4. Top 7 Questions About Currency Trading Answered

    Whether you're puzzled by pips or curious about carry trades, your queries are answered here.

  5. Choose Your Monthly Mortgage Payments

    Exotic mortgages allow you to decide how much to pay. Find out how much they really cost.

  6. Getting A Loan Without Your Parents

    Use the 5 "W"s to finance your dreams without banking on a second signature.

  7. Home-Equity Loans: The Costs

    Learn the factors to consider when comparing the different programs offered by various lenders.

  8. Microeconomics

    This tutorial teaches the basics of one of the most important economic topics. A must for all investors.

  9. The Top 3 Retiree Worries (And What To Do About Them)

    Discover the most common problems retirees face, and what they can do to solve them.

  10. The Risks Of Mortgage-Backed Securities

    Find out how weighted average life guards against prepayment risk.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center