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2011.05.17 (Review of 2005.11.18 edition)
Many schoolchildren learn the sentence “The principal is your pal” to remember that the word “principal” (= the head of a school) ends in “pal” (= friend) rather than “ple”. Well, today we look at another kind of principal, the kind that's more likely to be found in a portfolio than in the classroom, the kind that's an investor's best friend!

PRINCIPAL 元金
- Principal is the original amount of money that was invested, lent, or borrowed.
- principal とは、投資した、貸した、または、借りた当初の、元の金額のことです。
- Since I retired, I've been living off the interest on my investments so that I can leave the principal for my children.
- With high-risk investments, there's a significant danger of losing some or all of your principal.
- (a financial advisor to a client)
Many conservative investors find these bonds attractive because, even if the stock market goes down, your principal is protected. - People are often shocked to learn that mortgage payments during the first few years mostly just pay off the interest and don't really reduce the principal by much.
Take care today!