Laserfiche WebLink
15.0 Investment Policy Adoption <br /> The City of Everett investment policy shall be adopted by Ordinance by the Everett City <br /> Council. The City Investment Committee shall review the policy on an annual basis,with any <br /> modifications made thereto approved by the Everett City Council prior to implementation. <br /> 16.0 Glossary <br /> ACCRUED INTEREST -The interest accumulated on a bond since issue date or the last <br /> coupon payment.The buyer of the bond pays the market price and accrued interest,which is <br /> payable to the seller. <br /> AGENCY-A debt security issued by a federal or federally sponsored agency. Federal <br /> agencies are backed by the full faith and credit of the U.S. Government. Federally Sponsored <br /> Agencies (FSAs) are backed by each particular agency with a market perception that there is <br /> an implicit government guarantee. (Also see FEDERAL AGENCY SECURITIES and <br /> GOVERNMENT SECURITY) <br /> AMORTIZATION -In portfolio accounting, periodic charges made against interest income <br /> on premium bonds in anticipation of receipt of the call price at call or of par value at <br /> maturity. <br /> BANKERS ACCEPTANCES (BAs) - Bankers Acceptances generally are created based on a <br /> letter of credit issued in a foreign trade transaction.They are used to finance the shipment of <br /> commodities between countries as well as the shipment of some specific goods within the <br /> United States. BAs are short-term, non-interest bearing notes sold at a discount and <br /> redeemed by the accepting bank at maturity for full face value.These notes trade at a rate <br /> equal to or slightly higher than Certificates of Deposit (CDs), depending on market supply <br /> and demand. Bankers Acceptances are sold in amounts that vary from $100,000 to <br /> $5,000,000, or more,with maturities ranging from 30 - 270 days.They offer liquidity to the <br /> investor as it is possible to sell BAs prior to maturity at the current market price. <br /> BASIS POINT -A measure of an interest rate, i.e., 1/100 of 1 percent, or.0001. <br /> BID - The indicated price at which a buyer is willing to purchase a security or commodity. <br /> When selling a security, a bid is obtained. (See Offer) <br /> BOOK ENTRY SECURITIES - U.S. government and federal agency securities that do not exist <br /> in definitive (paper) form;they exist only in computerized files maintained by the Federal <br /> Reserve Bank. <br /> BOOK VALUE -The amount at which an asset is carried on the books of the owner.The book <br /> value of an asset does not necessarily have a significant relationship to market value. <br /> BROKER-A broker brings buyers and sellers together for a commission paid by the initiator <br /> of the transaction or by both sides. <br /> City of Everett Investment Policy(2017) <br /> 21 <br />