Principal

1.

An individual or other legal person represented by an agent.

2.

The amount of an investment or a loan, excluding any interest.

When the whole of a loan is drawn down at the start, the principal is simply the amount originally borrowed.

3.

The reference amount of a traded financial instrument, used to determine its future cashflows.

See also

• Acceleration
• Agency
• Agent
• Coupon rate
• Dual currency bond
• Foreign currency bond
• Forward forward contract
• Non-performing loan
• Paying agent
• Point
• Self-financing loan
• Annuity factor
• Instalment