The Municipal Securities Rule Making Board or the MSRB is the organization responsible for overseeing the municipal securities industry. The MSRB has no enforcement arm and its only function is to write rules and test questions. As a result, the Series 10 exam will contain a number of questions relating to municipal securities.

Municipal bonds

State and local governments will issue municipal bonds in order to help the local governments meet their financial needs. Most municipal bonds are considered to be almost as safe as Treasury securities issued by the federal government. However, unlike the federal government, from time to time an issuer of municipal securities does default.  The degree of safety varies from state to state and from municipality to municipality. Municipal securities may be issued by:

  • States
  • Territorial possessions of The US, such as Puerto Rico
  • Legally constituted taxing authorities and their agencies
  • Public authorities that supervise ports and mass transit 



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