Difference between revisions of "Principal"

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(Updated entry. Source ACT Glossary of terms)
(Add the case of a principal who is not represented by an agent.)
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A legal person acting on their own behalf.
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The amount of an investment or a loan, excluding any interest.
 
The amount of an investment or a loan, excluding any interest.
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The reference amount of a traded financial instrument, used to determine its future cashflows.
 
The reference amount of a traded financial instrument, used to determine its future cashflows.

Revision as of 21:10, 13 December 2014

1.

An individual or other legal person represented by an agent.


2.

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.


See also