Prior Redemption

See " Called Bonds."

Private Bankers

Those receiving deposits and carrying on the general business of banking, but not incorporated, and so not under State or Government control, as national or State banks. A large part of the buying and selling of investment securities is in the hands of the "private bankers."

Private Discounts at Berlin (or other points). The rate at which firms or individuals of known good financial standing can borrow at the point named; i. e. the rate at which their paper will be discounted, but which rate is distinguished from the Bank of Germany rate. "Private discounts" abroad are other rates than those of the Government controlled banks.

Private Wire Houses

Those having telegraph wires or telephones for their own exclusive use, and which connect them with their branches in other places, or with certain other houses in the large centres.


See "Options," meaning the same

Privilege Of Registration

Many bonds are issued in coupon form, but with the right reserved to the holder to have the same registered either as to principal or interest, or both, as the case may be, but the holder of the bond is not obliged to exercise this privilege unless he so desires. (See "Registered Bond.")


As used in the discounting of a note, it is the amount which the borrower obtains after deducting the " discount." (See " Discount.")


There seems to be some doubt, even upon the part of the best financial writers of our leading newspapers, as to just what a " professional " speculator is, as is evidenced by the following:

"Professional is really nothing more nor less than ' habitual. Apparently there is a certain section of the ' public ' which speculates practically all the time, or almost all of the time, . . . while the rest of the ' public ' speculates only at intervals more or less rare. Possibly at times the word ' professional is used to designate something more in the way of a promoter or a speculative banker, or some other part of purely Wall Street machinery. But in the general sense of the word, it probably means simply that portion of the community which habitually speculates." (See also " Traders.")

Professional Traders

See " Traders."


When a security is sold for more than cost, or appreciates in value above cost; when a business at the end of a stated period has earned more money than the cost of operating, it is said to have been "run at a profit." (See " Net Profits.")

Profit And Loss

The bookkeeping term used as a heading under which are entered the profits and losses of a concern, and would be on the credit or debit side of the account accordingly. Formerly it was customary, and is now with some bookkeepers, to make an entry of a loss in red ink, from whence arose the term "in the red," always indicating a loss. The modern system of bookkeeping calls for the use of as little red ink as possible, and to quite an extent the use of red ink has been discontinued for a loss entry. The abbreviation "P. & L." stands for " profit and loss."