principal risk

principal risk definition - business

principal risk

The possibility an investment will be worth less when it is sold than when it was purchased. Principal risk is high for tangible assets and for common stocks compared to most fixed-income investments such as bonds, preferred stock, and certificates of deposit.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.