Laserfiche WebLink
<br />XVIII. GLOSSARY <br /> <br />AGENCIES: <br />Federal agency securities and/or govern- <br />ment-sponsored enterprises. <br />ASKED PRICE: <br />The price at which securities are bought by <br />the City. (When buying securities you ask <br />for an offer.) <br />BANKERS' ACCEPTANCE (BA): <br />A securitized draft or bill or exchange <br />accepted by a bank or trust cOlnpany. The <br />accepting institution guarantees payment of <br />the bill, as well as the issuer. <br />BID PRICE: <br />The price at which securities are sold. <br />(When you are selling securities, you ask <br />for a bid.) <br />BROKER: <br />A firm or person bringing buyers and <br />sellers together for a fee. A Dealer may act <br />as a broker. <br />CERTIFICATE OF DEPOSIT (CD): <br />A bank time deposit evidenced by a <br />certificate. Large-denomination CD's are <br />typically negotiable. <br />COLLATERAL: <br />Securities, evidence of deposit or other <br />property which a borrower pledges to <br />secure repayment of aJoan or pledged by a <br />bank to secure deposits of public monies. <br />Collateral for repurchase agreements are <br />owned not pledged by the counter-party <br />COMPREHENSIVE ANNUAL <br />FINANCIAL REPORT (CAFR): <br />The official annual report for the City of <br />San Marcos. It. includes five combined <br />statements for each individual fund· and <br />account group prepared in conformity with <br />GAAP. It also includes supporting <br />schedules necessary to demonstrate <br />compliance with finance-related legal and <br />contractual provisions, extensive <br />introductory material, and a detailed <br />Statistical Section. <br /> <br />City of San Marcos Investment Policy <br /> <br />COUPON: <br />(a) The annual rate of interest that abond's <br />issuer promises to pay the bondholder on <br />the bond's face value or rate on a CD. (b) <br />A redeemable physical. certificate attached <br />to a physical bond evidencing interest due <br />on a particular payment date. <br />DEALER: <br />A dealer acts as a principal in all <br />transactions, buying andselling for his own. <br />account. A dealer may broker a trade not <br />from his/herportfolio. <br />DEBENTURE: <br />A bond secured . only by the general credit <br />of the issuer. <br />DELIVERY VERSUS PAYMENT (DVP): <br />Delivery of book-entry securities with a <br />simultaneous· exchange of money for the <br />securities for control. <br />DELIVERY VERSUS RECEIPT (DVR): <br />Delivery of securities with an exchange of <br />a signed receipt for the securities. <br />DERIVATIVES: <br />(1 ) Financial instruments whose return <br />profile is derived from one or more <br />underlying index or security (interest rates, <br />foreign exchange rates, equities or <br />commodities), and may include a <br />leveraging factor, or (2) financial contracts <br />derived from an underlying index or <br />security; <br />DISCOUNT: <br />(a) The difference between the settlement <br />cost price of a security and its face value at <br />maturity· when priced ât lower than face <br />value. (b) A security selling at a discount. <br />DISCOUNT SECURITIES: <br />Non-interest bearing securities sold at a <br />discount, e.g., u.S. Treasury Bills,agency <br />discount notes, and CP. <br />DIVERSIFICATION: <br />Practice of using a varietY of securities to <br />spread risk. <br /> <br />Page 9 <br />