Difference between revisions of "Principal"

From ACT Wiki
Jump to: navigation, search
(Generalise the health warning about distinguishing from 'principle'.)
(Spacing.)
Line 4: Line 4:
 
#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.
 
#Most important, or largest.  
 
#Most important, or largest.  
 +
  
 
The concepts of 'principal' above, should not be confused with ''principle'', which is different.
 
The concepts of 'principal' above, should not be confused with ''principle'', which is different.

Revision as of 15:45, 19 November 2015

  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