Municipal Bonds: Local Government Securities
In This Chapter
Understanding municipal bond basics
Comparing general obligation bonds to revenue bonds
Reviewing other types of municipal bonds
Recognizing sources of municipal bond information
Reviewing additional topics tested
Municipal bonds are securities that state governments, local governments, or U.S. territories issue. The municipality uses the money it borrows from investors to fund and support projects, such as roads, sewer systems, hospitals, and so on.
Even though you’re most likely going to spend a majority of your time selling equity securities (stocks), for some unknown reason, the Series 7 tests heavily on municipal securities. As a matter of fact, municipal bonds are one of the most heavily tested areas on the entire exam. If you’ve flipped ahead, you may have noticed that this chapter isn’t one of the biggest in the book. Why is that? Well, I cover a lot of the bond basics, such as par value, maturity, types ...