Series 7: Chapter Three: Municipal Securities

Chapter Three

Municipal Securities

Municipal securities are bonds, notes, and other types of securities issued by states, cities, and counties to fund their operations. Municipal securities, also known as “munis,” are issued by school districts, highway departments, and other public authorities to finance specific projects, such as public education, highway construction, football stadiums, and mass transit systems. Puerto Rico, Guam, and other U.S. territories may also issue municipal bonds.

Municipal bonds are different from corporate and other government bonds because they are generally exempt from federal government oversigh