Tax-exempt security

Definition:

An obligation whose interest is tax-exempt, often called a municipal bond, offered by a country, state, town, or any political district.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Close-end credit

An agreement in which advanced credit plus any finance charges are expected to be repaid in full over a definite time. Most real estate and automobile loans are closed-end agreements.

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