Principal principal, referring, exactly

Foufou

I have seen questions referring principal everywhere. Who exactly is the principal?

LokiDog2

I think it's related to underwriting. It's supposed to a designation if I understand the questions correctly. It has been used in many ethics questions in schweser mock exams.

lc26mizzou

If you're talking about the principle-agent problem, the principle is the owner/shareholders.

If you're talking about loans, principal is the amount you're owed excluding interest payments.