Principal

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Revision as of 13:36, 10 September 2014 by Doug Williamson (Talk | contribs) (Additional sentence added to item 2 to bring in line with Glossary)

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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