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payment for securities is due at the time of delivery. Security delivery and payment occur simultaneously. <br />This practice ensures that no funds are at risk in an investment transaction as funds are not released until <br />securities are delivered, ensuring the governmental entity has either money or securities at all times during <br />the transaction. \[Referenced page: 16\] <br />SECONDARY MARKET:A market made for the purchase and sale of outstanding issues following the <br />initial distribution. \[Referenced page: 4\] <br />SECURITIES AND EXCHANGE COMMISSION: Agency created by Congress to protect investors in <br />securities transactions by administering securities legislation. \[Referenced pages: 12, 32, 33\] <br />SPECULATION: Assumption of risk in anticipation of gain but recognizing a higher than average possibility <br />of loss. \[Referenced page: 14\] <br />SWAP:Trading one asset for another. \[Referenced page: 4\] <br />SUPRANATIONAL OBLIGATIONS: United States dollar denominated senior unsecured unsubordinated <br />obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and <br />Development, International Finance Corporation, or Inter-American Development Bank, with a maximum <br />remaining maturity of five years or less, and eligible for purchase or sale within the United States. <br />\[Referenced pages: 9, 17\] <br />TREASURIES: Negotiable U.S. Government debt obligations, backed by its full faith and credit, comprising <br />of short-termTreasury Bills (maturity less than one year), medium-term Treasury Notes (maturity one to ten <br />years), and long-term Treasury bonds (maturity from 10 to 30 years). \[Referenced pages: 3, 5, 17\] <br />TREASURY BILLS (T-Bills):A non-interest bearing discount security issued by the US Treasury to finance <br />the national debt. A T-Bill is a short-term debt obligation backed by the U.S. government with a maturity of <br />less than one year, sold in denominations of $1,000 up to a maximum purchase of $5 million. T-bills are <br />sold with maturities of four, thirteen, twenty-six and fifty-two weeks. They do not pay interest, but rather are <br />sold a discount to their face value. Effective interest is earned at maturity. \[Referenced pages: 9, 10, 17\] <br />TREASURY BONDS (T-Bonds): Long-term coupon-bearing US Treasury securities issued as direct <br />obligations of the US Government and having initial maturities of more than 10 to 30 years. Next to treasury <br />bills (maturity less than one year), and treasury notes (maturity one to ten years) T-bonds are the safest <br />form of marketable investment. \[Referenced pages: 9, 10, 17\] <br />TREASURY NOTES:Medium-term coupon-bearing US Treasury securities issued as direct obligations of <br />the US Government and having initial maturities from one to 10 years. Treasury notes are available from <br />the government with either a competitive or noncompetitive bid. \[Referenced pages: 9, 10, 17, 29\] <br />WEIGHTED AVERAGE MATURITY (WAM): The average maturity of all the securities that comprise a <br />portfolio. According to SEC rule 2a-7, the WAM for SEC registered money market mutual funds may not <br />exceed 90 days and no one security may have a maturity that exceeds 397 days. \[Referenced page: 19\] <br />YIELD: The rate of annual income return on an investment, expressed as a percentage: (a) Income Yield is <br />obtained by dividing the current dollar income by the current market price for the security; (b) Net Yield or <br />Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in <br />purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity <br />of the bond. \[Referenced pages: 3, 4, 5, 19, 21\] <br />*´«¸ ΐǾ ΑΏΐ9- <br />C¨³¸ ®¥ 3 ­³  ȃ !­­´ « <br />0 ¦¤ H <br />3³ ³¤¬¤­³ ®¥ )­µ¤²³¬¤­³ 0®«¨¢¸*´­¤ ΒΏǾ ΑΏ20 <br /> <br />