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 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."
An arrangement in which one entity legally appoints another to ...
The owner of a government or corporate bond. Being a bondholder ...
This occurs when the amount a company or government repays in ...
A ratio between the annual amount of debt servicing to the total ...
A type of internal cost that arises from, or must be paid to, ...
1. An individual or firm that places securities transactions ...