Principal Sum (Noun)
Meaning
Capital as contrasted with the income derived from it.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The investor was careful to protect the principal sum, knowing that the real returns would come from reinvesting the interest.
- He never touched the principal sum, content to live off the dividends it generated.
- The principal sum was preserved, while the majority of the gains went back into further investments.
- The deceased left a large principal sum in a trust fund to ensure their grandchild's education.
- Economic policymakers must consider the risks of inflation eroding the principal sum of people's savings over time.