The term “principal” has several meanings in the financial and business world.
In the context of borrowing, the principal is the original amount of the loan or bond (the amount to be repaid).
In the context of investing, the principal amount is the initial amount intended for the purchase of assets (regardless of any income or interest).
In business, executives are those who own a controlling stake in a company and/or play a significant role in its management.
In contracts and contractual ventures, the principals are the main parties involved in the transaction, who have rights, duties and obligations in relation to it.