Municipal Bond

A municipal bond is a bond issued by a local government, or their agencies. Potential issuers of municipal bonds include cities, counties, redevelopment agencies, special-purpose districts, school districts, public utility districts, publicly owned airports and seaports, and any other governmental entity (or group of governments) below the state level. Municipal bonds may be general obligations of the issuer or secured by specified revenues.

In the United States, interest income received by holders of municipal bonds is often exempt from the federal income tax and from the income tax of the state in which they are issued, although municipal bonds issued for certain purposes may not be tax exempt.

Unlike new issue stocks that are brought to market with price restrictions until the deal is sold, municipal bonds are free to trade at any time once they are purchased by the investor. Professional traders regularly trade and retrade the same bonds several times a week.

Read more about Municipal BondHistory, Types of Tax-exempt Bonds, Purpose of Municipal Bonds, Risk, Disclosures To Investors, Comparison To Corporate Bonds, Subprime Mortgage Crisis, Default Rates, Build America Bonds, Statutory History

Other articles related to "municipal bond, municipal bonds, municipal, bond":

History Of The Pike Place Market - The Goodwin Expansion Years
... initiative system to obtain a $150,000 municipal bond issue for their desired improvements ... an engineer, was not in favor of some of the farmer's plans and the idea of such a large municipal bond ... Cotterill drafted an alternate ballot initiative, for a $25,000 municipal bond ...
Municipal Bond - Statutory History
... Constitution to tax interest on municipal bonds ... the Congress could tax interest income on municipal bonds if it so desired on the basis that tax exemption of municipal bonds is not protected by the ... law." The Revenue Act of 1913 first codified exemption of interest on municipal bonds from federal income tax ...
History of Bond Insurance - 2009 and Beyond
... In 2009, Berkshire Hathaway exited the municipal bond insurance business ... certain other troubled policies) and a general account (with liability for most municipal policies) ... As of September 2011, Assured Guaranty remains an active writer of bond insurance, insuring 10-13% of all municipal bond issues and a larger percentage ...

Famous quotes containing the words bond and/or municipal:

    I therefore, the prisoner in the Lord, beg you to lead a life worthy of the calling to which you have been called, with all humility and gentleness, with patience, bearing with one another in love, making every effort to maintain the unity of the Spirit in the bond of peace.
    Bible: New Testament, Ephesians 4:1-3.

    No sane local official who has hung up an empty stocking over the municipal fireplace, is going to shoot Santa Claus just before a hard Christmas.
    Alfred E. Smith (1873–1944)