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San Leandro Investment Policy Statement Page 13 of 13 <br /> <br />Appendix B (continued) <br />Glossary of Technical Terms <br /> <br /> <br />Secondary Dealer - Securities dealers who purchase and sell securities that have been <br />previously issued. <br /> <br />Secondary Market – The market where securities are purchased and sold after they <br />have been issued. <br /> <br />Securities and Exchange Commission (SEC) – A federal agency created by <br />congress to protect investors in securities transactions by administering securities <br />legislation. <br /> <br />Treasury Bills (T-Bills) – A non-interest bearing discount security issued by the U.S. <br />Treasury to finance the national debt. Most bills are issued to mature in three months, <br />six months or one year. <br /> <br />Treasury Bonds – Long-term coupon-bearing U.S. Treasury securities having initial <br />maturities of more than ten years. <br /> <br />Treasury Notes – Medium-term coupon-bearing U.S. Treasury securities having initial <br />maturities of two to ten years. <br /> <br />Uniform Net Capital Rule – Securities and Exchange Commission requirement that <br />member brokers and dealers maintain a maximum ratio of indebtedness to liquid capital <br />of fifteen to one. Indebtedness includes all money owed to other entities including loans <br />and commitments to purchase securities. Liquid capital includes cash and other assets <br />easily converted to cash. <br /> <br />Yield – The rate of annualized income return on a security, expressed as a percentage <br />of the security’s purchase price. <br />