What is a 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 endorser, guarantor, or surety. (3) A person who commits a crime, takes an active part in its commission, or directly or indirectly income (interest) derived from it. 5. Securities: The par value of a security. Usage Example In this classic high-risk high-reward situation, you could stand to lose your principal and even end up in debt, but the rewards are boundless.
Posted on: Tue, 16 Dec 2014 14:11:50 +0000