- The definition of principal is the first or highest in importance.
An example of a principal ingredient is flour in bread.
- Principal is someone or something that holds the highest rank, or is a sum of money.
- An example of principal is the person in charge at a school or the head of a research project.
- An example of principal is the amount of money loaned to a business.
principal definition by Webster's New World
- first in rank, authority, importance, degree, etc.
- that is or has to do with principal ()
Origin: Old French ; from Classical Latin principalis ; from princeps: see prince
- a principal person or thing; specif.,
- a chief; head
- a governing or presiding officer, specif. of a school
- a main actor or performer
- either of the combatants in a duel
- any of the main end rafters of a roof, supporting the purlins
- a roof truss
- the amount of a debt, investment, etc. minus the interest, or on which interest is computed
- the face value of a stock or bond
- the main body of an estate, etc., as distinguished from income
- a person who employs another to act as his agent
- the person primarily responsible for an obligation
- a person who commits a crime or is present as an abettor to it
- any of the principal open stops of an organ
- the soloist in a concert
- the first player of any section of orchestral instruments except the first violins
- the subject of a fugue
principal definition by American Heritage Dictionary
- First, highest, or foremost in importance, rank, worth, or degree; chief. See Synonyms at chief.
- Of, relating to, or being financial principal, or a principal in a financial transaction.
- One who holds a position of presiding rank, especially the head of an elementary school or high school.
- A main participant in a situation.
- A person having a leading or starring role.
- a. The capital or main body of an estate or financial holding as distinguished from the interest or revenue from it.b. A sum of money owed as a debt, upon which interest is calculated.
- Law a. A person who empowers another to act as his or her representative.b. The person having prime responsibility for an obligation as distinguished from one who acts as surety or as an endorser.c. One who commits or is an accomplice to a crime.
- Architecture Either of a pair of inclined timbers forming the sides of a triangular truss for a pitched roof.
Origin: Middle English, from Old French, from Latin prīncipālis, from prīnceps, prīncip-, leader, emperor; see per1 in Indo-European roots.
- prinˈci·pal·ly adverb
- prinˈci·pal·shipˌ noun
principal - Business Definition
- The face amount of a bond. Once a bond has been issued, it may sell at more or less than its principal amount, depending on changes in interest rates and the riskiness of the security. At maturity, however, the bond will be redeemed for its principal amount. Also called principal amount.
- Funds put up by an investor.
- The person who owns or takes delivery of an asset in a business transaction. For example, the owner of a home (the principal) contracts with a broker to list the home for sale.
principal - Cultural Definition
The original amount of money lent, not including profits and interest.
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.
- The face amount of a bond. Once a bond has been issued, it may sell at more or less than its principal amount, depending upon changes in interest rates and the riskiness of the security. At maturity, however, the bond will be redeemed for its principal amount. Also called principal amount.
- Funds put up by an investor.
- The person who owns or takes delivery of an asset in a trade. For example, an investor is the principal for whom a broker executes a trade.
principal - Legal Definition