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San Leandro Investment Policy Statement Page 12 of 13 Appendix B Glossary of Technical Terms Local Agency Investment Fund (LAIF) — A pooled investment fund maintained by the California State Treasurer consisting of deposits from the State and from California political subdivisions. Maturity — The date that the principal or stated value of an investment becomes due and payable. Money Market — The market where short -term debt securities such as treasury bills, commercial paper and Banker's acceptances are issued and traded. Portfolio — A collection of assets (securities, real property, buildings, etc.) held by an investor. Primary Dealer — A group of government securities dealers subject to the informal oversight of the Federal Reserve Bank of New York. Primary Market - The market where investment. securities are purchased and sold when they are first issued. Prudent Investor Standard or Prudent Person Rule — An investment standard that requires an investor having trustee or fiduciary responsibility to select securities that would be bought by a prudent person of discretion and intelligence who is seeking capital preservation and a reasonable income. Repurchase Agreement ( "Repo') — An investment transaction where the holder of securities sells the securities to an investor with an agreement to repurchase them for a fixed price on a fixed date. In effect, the buyer lends the seller money for the term of the agreement and the agreement is structured to compensate the buyer for this. Reverse Repurchase Agreement ( "Reverse Repo') — An investment transaction where an investor buys securities from another investor with an agreement to resell them for a fixed price on a fixed date. Safekeeping — A service provided by banks and other financial institutions whereby securities and /or collateral are held for protection and safety. Secondary Dealer - Securities dealers who purchase and sell securities that have been previously issued. Secondary Market — The market where securities are purchased and sold after they have been issued.