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Home > Terms > English, UK (UE) > Principal
Principal
The basic amount invested or borrowed, not including any interest or dividends.
For bonds: The face or par value of a bond. The principal amount of a trade is the par value of one bond times the number of bonds involved in the trade.
For MMS:
This category contains a return payment of an original investment in a debt product. Examples are principal payments from an amortised security such as a FNMA pools and bond partial calls, full calls and redemptions.
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- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Financial services
- Category: Funds
- Company: Merrill Lynch
- Product:
- Acronym-Abbreviation:
Other Languages:
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