| Municipal Bond | |
 A debt security issued by a state, municipality, or county, in order 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 the bond is issued. |
|
 Such expenditures might include 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. |
|
 Bond Basics Tutorial - What are bonds and do they belong in your portfolio? Get all the answers in this comprehensive tutorial. Weighing the Tax Benefits of Municipal Securities - Find out how to determine whether the tax exemption offered by "munis" benefits you. |
|
Related Terms
 |