For the purpose of this subchapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
BROKER. Brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides; he or she does not position. In the money market, BROKERS are active in markets in which financial intermediaries, corporations and other participants buy and sell money or short-term maturity instruments and in interdealer markets.
COMPREHENSIVE ANNUAL FINANCIAL REPORT. The official annual financial report for the county which is audited by an independent auditor, as outlined in S.C. Code § 4-9-150.
DEALER. As opposed to a broker, acts as a principal in all transactions, buying and selling for his or her own account.
DELIVERY VERSUS PAYMENT. There are two methods of delivery of securities: delivery versus payment and delivery versus receipt (also called free). DELIVERY VERSUS PAYMENT is delivery of securities with an exchange of money for the securities upon delivery and receipt.
DELIVERY VERSUS RECEIPT. Delivery of securities with an exchange of a signed receipt for the securities.
DIVERSIFICATION. Dividing investment funds among a variety of securities offering independent returns.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC). A federal agency that insures bank deposits, currently up to $100,000 per deposit.
LOCAL GOVERNMENT INVESTMENT POOL (LGIP). The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment.
MARKET VALUE. The price at which a security is trading and could presumably be purchased or sold.
MATURITY. The date upon which the principal or stated value of an investment becomes due and payable.
PRIMARY DEALER. A group of government securities dealers that submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. PRIMARY DEALERS include Securities and Exchange Commission (SEC) registered securities broker-dealers, banks and a few unregulated firms.
PRUDENT PERSON RULE. An investment standard. In the state, the law requires that the county treasurer may invest money only in a list of securities enumerated in the South Carolina Code of Laws.
SEC RULE 15C3-1. See UNIFORM NET CAPITAL RULE.
SECURITIES AND EXCHANGE COMMISSION. The agency created by Congress to protect investors in securities transactions by administering securities legislation.
UNIFORM NET CAPITAL RULE. Securities and Exchange Commission requirement that member firms as well as nonmember broker-dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
(‘77 Code, § 8-83) (Ord. 1592, passed 3-16-92)