Principal
From ACT Wiki
1.
In agency law, an individual or other legal person represented by an agent.
2.
In law, a legal person acting on their own behalf.
3.
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.
4.
The reference amount of a traded financial instrument, used to determine its future cashflows.
5.
Most important, or largest.
The concepts of 'principal' above, should not be confused with principle, which is different.
See also
- Acceleration
- Agency
- Agent
- Annuity factor
- Arm’s length principle
- Contractor
- Coupon
- Coupon rate
- Dual currency bond
- Endowment
- Employee
- Employer
- Foreign currency bond
- Forward forward contract
- Instalment
- Interest
- Mortgage
- Non-performing loan
- Paying agent
- Point
- Security
- Self-financing loan
- Separate personality principle
- Terminal value
