Sarasota County Investment Policy 2018

Sarasota County Investment Policy 25 106. SEC RULE 15C3-1: See “Uniform Net Capital Rule”. 107. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. 108. SECURITIES & EXCHANGE COMMISSION (SEC): An independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets and facilitating capital formation. It was created by congress in 1934 as the first federal regulator of securities markets. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States. 109. SECURITY: A transferable financial instrument that evidences ownership or creditorship, whether in physical or book entry form. 110. SERIAL BOND: A bond issue, usually of a municipality, with various maturity dates scheduled at regular intervals until the entire issue is retired. 111. SINKING FUND: Money accumulated on a regular basis in a separate custodial account that is used to redeem debt securities or preferred stock issues. 112. SLUGS: Nonmarketable US Treasury securities sold to states and municipalities. These parties then deposit the securities into escrow accounts until they use them to pay off their own bonds at maturity. 113. SMALL BUSINESS ADMINISTRATION (SBA): The SBA is a United States government agency that provides support to entrepreneurs and small businesses. SBA loans are made through banks, credit unions and other lenders who partner with the SBA. The SBA provides a government-backed guarantee on part of the loan. 114. SPREAD: (a) The yield or price difference between the bid and offer on an issue, or (b) The yield or price difference between different issues. 115. STRUCTURED NOTES: Notes issued by Government Sponsored Enterprises (FHLB, FNMA, SLMA, etc.) and Corporations, which have imbedded options (e.g., call features, step-up coupons, floating rate coupons, and derivative-based returns) into their debt structure. Their market performance is impacted by the fluctuation of interest rates, the volatility of the imbedded options and shifts in the shape of the yield curve. 116. STUDENT LOAN MARKETING ASSOCIATION (SLMA): SLMA, commonly referred to as Sallie Mae, provides federally guaranteed student loans originated under the Federal Family Education Loan Program. Congress created Sallie Mae in 1972 as a government sponsored enterprise. Sallie Mae began privatizing its operations in 1997 and completely severed its ties to the federal government in 2004. 117. SUPRANATIONAL BONDS: A supranational entity is formed by two or more central governments with the purpose of promoting economic development for the member countries. Supranational institutions finance their activities by issuing debt, such as supranational bonds. Supranational debt refers to bonds issued by international organizations, often multinational or quasi-government organizations, with the purpose of promoting economic development for their member countries. Examples include World Bank and Asian Development Bank.