Principal

Definition

Principal has at least three meanings in financial context:

• With respect to a Debt instruments: the value of an obligation, such as a bond or loan, raised and that must be repaid at maturity.
• In the context of investments: the original amount of money invested, separate from any associated interest, dividends or capital gains.
• In legal context, it is the party entrusting a draft and/or documents to a financial institution for the collection of the payment.

See Also

• EDM Council / Quarule

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.