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| Definitions by InvestorWords.com |
| What is...? |
| principal The amount borrowed, or the part of the amount borrowed which remains unpaid (excluding interest), here also called principal amount. Also, the part of a monthly payment that reduces the outstanding balance of a mortgage. Also, the original investment. see also additional principal payment, amortization, defensive investment strategy, face value, half-life, loan, debt, mortgage, open-end mortgage, original principal balance, PITI, simple interest, single-payment loan. Also, a main party to a transaction, acting as either a buyer or seller. Also, the role a broker/dealer plays when buying or selling securities for its own account. Also, an important company executive. |
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