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principal

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prin⋅ci⋅pal

  [prin-suh-puhl]
Use principal in a Sentence
–adjective
1. first or highest in rank, importance, value, etc.; chief; foremost.
2. of, of the nature of, or constituting principal or capital: a principal investment.
3. Geometry. (of an axis of a conic) passing through the foci.
–noun
4. a chief or head.
5. the head or director of a school or, esp. in England, a college.
6. a person who takes a leading part in any activity, as a play; chief actor or doer.
7. the first player of a division of instruments in an orchestra (excepting the leader of the first violins).
8. something of principal or chief importance.
9. Law.
a. a person who authorizes another, as an agent, to represent him or her.
b. a person directly responsible for a crime, either as an actual perpetrator or as an abettor present at its commission. Compare accessory (def. 3).
10. a person primarily liable for an obligation, in contrast with an endorser, or the like.
11. the main body of an estate, or the like, as distinguished from income.
12. Finance. a capital sum, as distinguished from interest or profit.
13. Music.
a. an organ stop.
b. the subject of a fugue.
14. (in a framed structure) a member, as a truss, upon which adjacent or similar members depend for support or reinforcement.
15. each of the combatants in a duel, as distinguished from the seconds.
Origin:
1250–1300; ME < L prīncipālis first, chief, equiv. to prīncip- (see prince ) + -ālis -al 1

Related forms:
prin⋅ci⋅pal⋅ship, noun

Synonyms:
1. prime, paramount, leading, main, cardinal, preeminent. See capital 1 . 4. leader. 5. headmaster, dean, master.

Antonyms:
1. secondary, ancillary.

Usage note:
The noun principle and the noun and adjective principal are often confused. Although pronounced alike, the words are not interchangeable in writing. A principle is broadly “a rule of action or conduct” (His overriding principle is greed) or “a fundamental doctrine or tenet” (Their principles do not permit the use of alcoholic beverages). The adjective principal has the general sense “chief, first, foremost”: My principal objection is the cost of the project. The noun principal has among other meanings “the head or director of a school” (The faculty supported the principal in her negotiations with the board) and “a capital sum, as distinguished from interest or profit” (The monthly payments go mostly for interest, leaving the principal practically untouched).
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2009.
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prin·ci·pal   (prĭn'sə-pəl)   
adj.  

  1. First, highest, or foremost in importance, rank, worth, or degree; chief. See Synonyms at chief.

  2. Of, relating to, or being financial principal, or a principal in a financial transaction.

n.  

  1. One who holds a position of presiding rank, especially the head of an elementary school or high school.

  2. A main participant in a situation.

  3. A person having a leading or starring role.

    1. The capital or main body of an estate or financial holding as distinguished from the interest or revenue from it.

    2. A sum of money owed as a debt, upon which interest is calculated.

    3. A person who empowers another to act as his or her representative.

    4. The person having prime responsibility for an obligation as distinguished from one who acts as surety or as an endorser.

    5. One who commits or is an accomplice to a crime.

  5. Law

    1. A person who empowers another to act as his or her representative.

    2. The person having prime responsibility for an obligation as distinguished from one who acts as surety or as an endorser.

    3. One who commits or is an accomplice to a crime.

  6. Architecture Either of a pair of inclined timbers forming the sides of a triangular truss for a pitched roof.


[Middle English, from Old French, from Latin prīncipālis, from prīnceps, prīncip-, leader, emperor; see per1 in Indo-European roots.]
prin'ci·pal·ly adv., prin'ci·pal·ship' n.
Usage Note: Principal and principle are often confused but have no meanings in common. Principle is only a noun and usually refers to a rule or standard. Principal is both a noun and an adjective. As a noun, it has specialized meanings in law and finance, but in general usage it refers to a person who holds a high position or plays an important role: a meeting among all the principals in the transaction. As an adjective it has the sense of "chief" or "leading": The coach's principal concern is the quarterback's health.
The American Heritage® Dictionary of the English Language, Fourth Edition
Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Cultural Dictionary

principal

The original amount of money lent, not including profits and interest.

The American Heritage® New Dictionary of Cultural Literacy, Third Edition
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Word Origin & History

principal  (adj.)
c.1290, from O.Fr. principal (11c.), from L. principalis "first in importance," from princeps (see prince). The noun is c.1300 in the sense of "ruler;" c.1340 in the sense of "money on which interest is paid;" 1827 as "person in charge of a public school," though meaning "head of a college or hall" was in England from 1438, and the basic sense of "chief, commander, ruler" is recorded from 1388. Principally "in the first place, mainly" is from 1340.
Online Etymology Dictionary, © 2001 Douglas Harper
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Financial Dictionary

Principal

1. The amount borrowed or the amount still owed on a loan, separate from interest.

2. The original amount invested, separate from earnings.

3. The face value of a bond.

4. The owner of a private company.

5. The main party to a transaction, acting as either a buyer or seller for his/her own account and risk.

Investopedia Commentary

Be sure to take into account the context in which this term is used, as the exact meaning of the term has many variations.

Can also be referred to as "corpus."

Related Links

Bond Basics Tutorial
Principal-Protected Funds - Security Has a Price

See also: Agent, Bond, Broker-Dealer, Dealer, Face Value

Also spelled: principle

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
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Financial Dictionary

principal

  1. 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.

  2. Funds put up by an investor.

  3. 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.


Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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Legal Dictionary

Main Entry: prin·ci·pal
Pronunciation: 'prin-s&-p&l
Function: adjective
1 : being the main or most important, consequential, or influential principal place of business> principal obligor>
2 : of, relating to, or constituting principal or a principal principal amount of the loan>

Main Entry: principal
Function: noun
1 : a participant in an action or transaction esp. having control or authority principals of a business>: as a : one who engages another to act for him or her subject to his or her general control or instruction : one from whom an agent derives authority to act —compare FIDUCIARY b : one who commits a crime or instigates, encourages, or assists another to commit it esp. when constructively or actually present —see also ACCESSORY 1
principal in the first degree
: a principal under common law who intentionally commits and is actually or constructively present at the commission of a crime
principal in the second degree
: a principal under common law who aids, encourages, or commands another to commit a crime and is actually or constructively present when it is committed c : the person primarily liable on a legal obligation or one who will ultimately bear the burden because of a duty to indemnify another as distinguished from one (as an endorser, surety, or guarantor) who is secondarily liable
2 : a capital sum earning interest, due as a debt, or used as a fund principal> principal>; also : the main body of an estate, devise, or bequest
Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
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