Term of the Day principal


Term of the Day

principal

1. Law: (1) A party who designates another (the agent) to act on his or her behalf. (2) A party that has the primary responsibility in a liability or obligation, as opposed to an endorserguarantor, or surety. (3) A person who commits acrime, takes an active part in its commission, or directly or indirectly income(interest) derived from it.
5. Securities: The par value of a security.
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Usage Example
In this classic high-risk high-reward situation, you could stand to lose yourprincipal and even end up in debt, but the rewards are boundless.
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