Principal

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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