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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 />Supra National Securities - US dollar denominated senior unsecured unsubordinated <br />obligations issued or unconditionally guaranteed by the International Bank for <br />Reconstruction and Development (IBRD), International Finance Corporation (IFC), or <br />Inter-American Development Bank (IADB), the long-term obligations of which are rated <br />at least "AA-/Aa-" or equivalent by at least two of the three rating agencies (S&P, <br />Moody's, and Fitch). No more than 10 percent of the City's portfolio may be invested in <br />eligible Supra National securities. The maximum maturity of Supra National securities <br />is five (5) years. No more than 10 percent of the portfolio may be invested in eligible <br />Supra National securities. <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 />