DEFINITION of 'Dealer Bank'

A commercial bank authorized to buy and sell government debt securities including federal and municipal bonds. This debt is usually issued to fund large government projects such as road and bridge construction. Dealer banks are registered with the Municipal Securities Rulemaking Board.


Income from municipal bonds is usually exempt from federal income taxes in addition to being virtually risk-free with a near zero default rate.

  1. Series 52

    The Series 52 is a certification that qualifies a financial professional ...
  2. Municipal Bond Fund

    A municipal bond fund is a fund that invests in municipal bonds.
  3. Municipal Bond

    A municipal bond is a debt security issued by a state, municipality ...
  4. Net Debt To Estimated Valuation

    A ratio comparing the net value of a municipal bond issue to ...
  5. Triple-Tax-Free

    An investment (usually a municipal bond) featuring interest payments ...
  6. Municipal Securities Rulemaking ...

    A regulating body that creates rules and policies for investment ...
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  1. How can you use a debt service coverage ratio (DSCR) to evaluate municipal bonds?

    Learn how the debt service coverage ratio (DSCR) can be used by investors to analyze the risk level of revenue bonds offered ... Read Answer >>
  2. How do the returns on municipal bonds compare to those of other bonds?

    Learn how tax-free municipal bonds may provide better returns than other types of bonds, and understand the risks of municipal ... Read Answer >>
  3. What is a triple tax-free municipal bond?

    At its core, a triple tax-free municipal bond is just like any corporate bond: it is a debt instrument, a loan given to a ... Read Answer >>
  4. Who or what is backing municipal bonds?

    Learn about the basics of municipal bonds, including the various revenue sources that are utilized to back or secure municipal ... Read Answer >>
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