Investment Fundamentals

Principal

Definition

What is Principal?

The original amount of money invested or lent, excluding later returns.

Example in practice

An investor places ₦500,000 in a bond; the ₦500,000 is the principal.

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Money or other resources committed to produce income, growth, or another economic benefit.

An asset or commitment of money made with the expectation of future income, growth, or both.

A person or organisation that commits capital with the expectation of a financial return.

Anything with economic value that can be owned or controlled.

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