Investopedia

Continue to Site »

Municipal Bond

Filed Under » ,
Dictionary Says

Definition of 'Municipal Bond'

A debt security issued by a state, municipality or county to finance its capital expenditures. Municipal bonds are exempt from federal taxes and from most state and local taxes, especially if you live in the state in which the bond is issued.

Also known as a "muni."
Investopedia Says

Investopedia explains 'Municipal Bond'

Municipal bonds may be used to fund expenditures such as the construction of highways, bridges or schools. "Munis" are bought for their favorable tax implications, and are popular with people in high income tax brackets.

Related Video for 'Municipal Bond'

Articles Of Interest

  1.

    3 Essential Rules For New Investors

    Find out how beginner investors can invest sensibly, suitably and simply.

  2. Immediate Annuities: More Income and Lower Taxes

    These instruments may shed their bad rap to bring you a hefty tax break.

  3. The Basics Of Municipal Bonds

    Investing in these bonds may offer a tax-free income stream but they are not without risks.

  4. Avoid Tricky Tax Issues On Municipal Bonds

    Learn the rules every investor should know before buying into this "tax-free" investment.

  5. What is "whoops" and how did it come to refer to one of the biggest municipal bond defaults in history?

    The Washington Public Power Supply System (WPPSS) was formed in the 1950s to make certain that the Pacific Northwest had a constant source of electrical power. The Packwood Lake Dam was the first ...

  6. Bonds: They're Not Just For Seniors

    Fixed-income investments can be part of your portfolio at any age. Find out how.

  7. Taxation Rules For Bond Investors

    Several factors affect the taxable interest that must be reported. Learn more here.

  8. Introduction To Bonds

    Find out how this method of debt investment is used to finance various levels of government and private companies.

  9. Build America Bonds: Should You Buy?

    BABs are part of the recovery act created by the Obama administration. Find out how they work and whether they could work for you.

  10. Why Retirees Can't Count On Muni Bonds

    Interest may not be tax-exempt for seniors with Medicare or Social Security benefits.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  2. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  3. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  4. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  5. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  6. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.
Trading Center