Principal Risk

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Definition: Principal Risk

Principal Risk
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Full Definition of Principal Risk

The risk of losing the amount invested due to bankruptcy or default. There is always the possibility that through some set of circumstances, invested money will decrease or completely disappear. In this case, principal is lost, not just profits.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/principal-risk/
Modern Language Association (MLA):
Principal Risk. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
February 12, 2025 https://payrollheaven.com/define/principal-risk/.
Chicago Manual of Style (CMS):
Principal Risk. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/principal-risk/ (accessed: February 12, 2025).
American Psychological Association (APA):
Principal Risk. PayrollHeaven.com. Retrieved February 12, 2025
, from PayrollHeaven.com website: https://payrollheaven.com/define/principal-risk/

Definition Sources

Definitions for Principal Risk are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 16th November, 2021 | 0 Views.