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What is principal in economics

User Choppy
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“Principal” is a term that has several financial meanings. The most commonly used refers to the original sum of money borrowed in a loan or put into an investment. Similar to the former, it can also refer to the face value of a bond. Principal can also refer to an individual party or parties, the owner of a private company, or the chief participant in a transaction.

User AllDayer
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I think a principal is money lent to a borrower or put into an investment. It can also refer to a private company’s owner or a one of a deal’s chief participants.

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User Idoby
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