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Principal
PrincipalThe amount of a loan, which the borrower has to pay back when the loan matures; a person who engages a broker to buy and sell for him. RELATED TERMS-------------------------------------- Loan Something lent (usually money) that will have to be given or paid back (usually with interest). SIMILAR TERMS-------------------------------------- PRINCE Credit Union PRINCE is a credit union with head office in BROOKLYN, NY PRINCE GEORGE`S EMPLOYEES Credit Union PRINCE GEORGE`S EMPLOYEES is a credit union with head office in UPPER MARLBORO, MD PRINCE HALL OF NEW JERSEY Credit Union PRINCE HALL OF NEW JERSEY is a credit union with head office in NEWARK, NJ PRINCETON UNIVERSITY Credit Union PRINCETON UNIVERSITY is a credit union with head office in PRINCETON, NJ Principal agent relationship Occurs when one person, an agent, acts on the behalf of another person, the principal. Principal amount The face amount of debt; the amount borrowed or lent. Often called principal. Principal Exchange Rated Linked Securities (PERLS) A debt instrument with its principal and interest denominated in U.S. dollars, but with principal repayment depending on the exchange rate of the U.S. dollar against a foreign currency. Principal finance Usually refers to the area within an investment bank that deals with high grade fixed income. Principal Finance Officer The head of an investment bank's Principal Finance division or a person that overseas the principal finance dealings of a firm. Principal Financial Principal Financial is a top United States corporation in the field of diversified financials, and its estimated market value is 11,730 million US dollars. Principal only (PO) A mortgage-backed security (MBS) whose holder receives only principal cash flows on the underlying mortgage pool. Principal orders A type of order carried out by a broker-dealer which involves the broker-dealer buying or selling for its own account and at its own risk, as opposed to carrying out trades for the brokerage's clients. Principal protected notes A fixed-income security that guarantees a minimum return equal to the investor's initial investment (the principal amount). Principal residence The primary location that a person inhabits. Principal stockholder A stockholder who owns 10% or more of the voting stock of a company. Principle of diversification That portfolios of different sorts of assets differently correlated with one another will have negligible unsystematic risk. Used in the context of general equities. 1) To execute a trade, evidenced by its printing on the ticker tape. 2) A trade. PREVIOUS AND NEXT TERMS-------------------------------------- Prime cost or direct cost The sum of direct material costs and direct labor costs. Prime paper The highest-quality, investment-grade debt of corporations as decided by rating agencies such as Moody's. Prime rate The interest rate at which banks lend to their best (prime) customers. More often than not, a bank's most creditworthy customers borrow at rates below the prime rate. Prime rate fund A mutual fund that buys portions of corporate loans from banks and pays the interest to shareholders. Primitive security An instrument such as a stock or bond for which payments depend only on the financial status of the issuer. Principal Principal agent relationship Occurs when one person, an agent, acts on the behalf of another person, the principal. Principal amount The face amount of debt; the amount borrowed or lent. Often called principal. Principal Exchange Rated Linked Securities (PERLS) A debt instrument with its principal and interest denominated in U.S. dollars, but with principal repayment depending on the exchange rate of the U.S. dollar against a foreign currency. Principal finance Usually refers to the area within an investment bank that deals with high grade fixed income. Principal Finance Officer The head of an investment bank's Principal Finance division or a person that overseas the principal finance dealings of a firm. We thank you for using the Financial Dictionary to search for Principal. If you have a better definition for Principal than the one presented here, please let us know by making use of the suggest a term option. This definition of Principal may be disputed by other professionals. Our attempt is to provide easy definitions on Principal and any other medical topic for the public at large.
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