Principal
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. |
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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." |
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