Investment Fundamentals
Principal
Definition
What is Principal?
The original amount of money invested or lent, excluding later returns.
Example in practice
How This Looks in Practice
An investorA person or organisation that commits capital with the expectation of a financial return. places ₦500,000 in a bond; the ₦500,000 is the principal.
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Related Terms
Investment Fundamentals
Capital
Money or other resources committed to produce income, growth, or another economic benefit.
Investment FundamentalsInvestment
An asset or commitment of money made with the expectation of future income, growth, or both.
Investment FundamentalsInvestor
A person or organisation that commits capital with the expectation of a financial return.
Asset ClassesAsset
Anything with economic value that can be owned or controlled.