Principal

1. Agency - law.

In agency law, an individual or other legal person represented by an agent.

2. Law - legal persons.

In law, a legal person acting on their own behalf.

3. Investment and borrowing.

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. Financial instruments - cashflows.

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

5. Importance - scale.

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
• Default
• Dual currency bond
• Duration
• Endowment
• Employee
• Employer
• Foreign currency bond
• Forward forward contract
• Instalment
• Interest
• Life
• Maturity
• Mortgage
• Non-performing loan
• Notional principal
• Paying agent
• Point
• Principal employer
• Principal risk
• Principal value
• Principal write down
• Principle
• Security
• Self-financing loan
• Separate personality principle
• Terminal value