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EXHIBIT A Glossary Asked The price at which securities are offered for sale by prospective sellers. Bankers' Acceptance (BA) Usually a 3 or 6 month investment where the investor has an interest in the import/export of international trade merchandise backed by a bank. There has never been a default in the history of this investment primarily because the investment is backed by the bank and the actual goods being transported. Bid The price offered for securities by prospective buyers. Broker A broker brings buyers and sellers together for a commission paid by the initiator of the transaction or by both sides. Collateral(CDs) Securities pledged by financial institutions to secure CDs over $250,000. The first $250,000 is federally insured and the excess is collaterized. In the event of bank default, the depositor would have legal claim to the pledged securities. Certificate of Deposit (CD) Time deposit with a certificate specifying the amount, maturity date, rate of interest, etc. Coupon The coupon rate is the interest rate at date of issuance on a security and is the rate paid over the life of the investment. At the time of purchase /sale the market rate is compared to coupon and a premium (market rate is lower than coupon rate) or discount (market rate is higher than coupon rate) is added to the face value. Dealer A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. Discount Securities Securities sold at a discount or less than face value. The security is redeemed at full face value upon maturity. Discount securities are usually short-term with maturities less than one year. Diversification Dividing investment funds among various types of securities to mitigate risk. Concept of "not putting all your eggs in one basket." Investment Policy Glossary 2010 4- 6- 10.doc 1