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Appendix B. <br /> Glossary of Technical Terms <br /> Local Agency Investment Fund (LAIF) — A pooled investment fund maintained by the <br /> Califomia 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 govemment 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 /> • <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 /> Securities and Exchange Commission (SEC) — A federal agency created by congress to protect <br /> investors in securities transactions by administering securities legislation. <br /> Page 1 1 of 12 <br /> • <br />