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San Leandro Investment Policy Statement Page 14 of 14 <br />Appendix B (continued) Glossary of Technical Terms <br /> <br /> <br />Secondary Dealer - Securities dealers who purchase and sell securities that have been previously issued. <br />Secondary Market – The market where securities are purchased and sold after they <br />have been issued. <br /> Securities and Exchange Commission (SEC) – A federal agency created by congress to protect investors in securities transactions by administering securities <br />legislation. <br /> <br />Supra National Securities - US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for 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 eligible Supra National securities. The maximum maturity of Supra National securities 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. Treasury to finance the national debt. Most bills are issued to mature in three months, 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. 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 member brokers and dealers maintain a maximum ratio of indebtedness to liquid capital 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 /> Yield – The rate of annualized income return on a security, expressed as a percentage of the security’s purchase price. <br />