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principal investment & finance definition
- The amount of money that is borrowed, excluding the interest charge, that remains unpaid. Principal also may be part of a monthly payment that reduces the outstanding balance of a loan. For instance, mortgage payments consist of principal and interest payments.
- The person or company who is the main party to a transaction.
- The role that a broker or dealer plays when selling or buying securities for his or her own account.
- A company executive, typically one with an ownership interest in the company.
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