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San Leandro Investment Policy Statement Page 11 of 12 <br />Appendix B <br />Glossary of Technical Terms <br />Local Agency Investment Fund (LAIF) - A pooled investment fund maintained by the <br />California State Treasurer consisting of deposits from the State and from California political <br />subdivisions. <br />Maturity -The date that the principal or stated value of an investment becomes due and <br />payable. <br />Money Market -The market where short-term debt securities such as treasury bills, commercial <br />paper and banker's acceptances are issued and traded. <br />Portfolio - A collection of assets (securities, real property, buildings, etc.) held by an investor. <br />Primary Dealer - A group of government securities dealers subject to the informal oversight of <br />the Federal Reserve Bank of New York. <br />Primary Market -The market where investment securities are purchased and sold when they are <br />first issued. <br />Prudent Investor Standard or Prudent Person Rule - An investment standard that requires an <br />investor having trustee or fiduciary responsibility to select securities that would be bought by a <br />prudent person of discretion and intelligence who is seeking capital preservation and a reasonable <br />income. <br />Repurchase Agreement ("Repo") - An investment transaction where the holder of securities <br />sells the securities to an investor with an agreement to repurchase them for a fixed price on a <br />fixed date. In effect, the buyer lends the seller money for the term of the agreement and the <br />agreement is structured to compensate the buyer for this. <br />Reverse Repurchase Agreement ("Reverse Repo") - An investment transaction where an <br />investor buys securities from another investor with an agreement to resell them for a fixed price <br />on a fixed date. <br />Safekeeping - A service provided by banks and other financial institutions whereby securities <br />and/or collateral are held for protection and safety. <br />Secondary Dealer -Securities dealers who purchase and sell securities that have been previously <br />issued. <br />Secondary Market -The market where securities are purchased and sold after they have been <br />issued. <br />