Laserfiche WebLink
<br />I <br /> <br />I <br /> <br />I <br /> <br />SECURITIES & EXCHANGE <br />COMMISSION: <br />Agency created by Congress to protect <br />investors in securities transactions by <br />administering securities legislation. <br />SEC RULE 15C3-1: <br />See Uniform Net Capital Rule. <br />STRUCTURED NOTES: <br />Notes issued Federal Agencies <br />(Government Sponsored Enterprises like <br />FHLB. FNMA, SLMA, etc.) and <br />Corporations which have imbedded options <br />(e,g" call features, step-up coupons, <br />floating rate coupons, derivative-based <br />returns). Their market performance and <br />value are impacted by the fluctuation of <br />interest rates, the volatility of the imbedded <br />optIons and shifts in the shape of the yield <br />curve. <br />TREASURY BILLS: <br />A non-interest bearing discount security <br />issued by the U.S. Treasury to finance the <br />national debt. Bills are issued to mature in <br />three months, six months. or one year. <br />TREASURY BONDS: <br />Long-teml coupon-bearing U.S. Treasury <br />securities issued as direct obligations ofthc <br />U.S. Government and having initial <br />maturities of more than 10 years. <br />TREASURY NOTES: <br />Medium-term coupon-bearing U.S. <br />Treasury securities issued as direct <br />obligations of the U.S, Government and <br />IUl'iing initial maturities from two to 10 <br />years <br /> <br />CilY of San Marcos Investment Policy <br /> <br />UNIFORM NET CAPITAL RULE; <br />Securities and Exchange Commission <br />requirement that member firms as well as <br />nonmember broker-dealers in securities <br />maintain a maximum ratio of indebtedness <br />to liquid capital of 15 to I; also called net <br />capital rule and net capital ratio. <br />Indebtedness covers all money owed to a <br />firm, including margin loans and <br />commitments to purchase securities. one <br />reason new public issues arc spread among <br />members of undcn\.Titing syndicates <br />Liquid capital includes cash and assets <br />easily converted ioto cash. <br />YIELD: <br />Retum on an investrncm. (a) CURRENT <br />YIELD is obtained by dividing thc annual <br />income by the current market price for the <br />security. (b) YIELD TO MATURITY is <br />the compound rate of return an mvestor <br />will receive if: (1) the security is held to <br />maturity and (2) all cash flows are <br />reinvested at the same rate, <br /> <br />Page 12 <br />