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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Acting As A Principal

Definition:

Acting as a Principal doesn't mean you get to suspend a bunch of snotty ten-year-olds for smoking behind the gym.

If a broker or a firm is acting as a principal, it acts as either the buyer or the seller for its own account, or as the main party when buying or selling.