About This Chapter
Municipal Securities Analysis and Regulation - Chapter Summary
Within this chapter, individuals who are studying for examinations in the securities industry can review concepts related to municipal securities analysis and regulation. Topics include analyzing and calculating revenue from bonds and other municipal investments. After working through the material, you should have the confidence to:
- Analyze and diversify municipal securities based upon geographical factors and rating
- Explain general obligation and revenue bonds
- Calculate dollar price of municipal securities, taking a range of factors into account
- Discuss various type of yield calculation for municipal securities
- Assess regulations and MSRB rules for municipal securities
- Detail how these securities are taxed
You will find the lessons contained in this chapter to be practical and to break down the material into manageable amounts. Frequent practice with worksheets and lesson quizzes can help you to make progress towards your exam goals.
1. Municipal Investments: Analysis & Diversification
In this lesson, you'll learn about the diversification of municipal investments using different municipal securities. We'll explain how to diversify the municipal investments on the basis of geographical location, type, and ratings.
2. Analyzing General Obligation Bonds
Municipal bonds are debt instruments issued by public entities like states, cities, and counties to raise capital. The most common type of municipal bonds are general obligation bonds.
3. Analyzing Revenue Bonds Using Market Indicators
Revenue municipal bonds are the second biggest source of funding for governmental entities. However, revenue bonds are unique in that the bonds are used to fund a project that will generate the revenue to pay off the bonds.
4. Pricing of Municipal Securities: Calculations & Examples
The lesson deals with the valuation of municipal securities. You'll learn how to calculate dollar price, accretion of discount and coupon prices of municipal securities.
5. How to Calculate Interest for Municipal Securities
State and local governments issue municipal securities to raise funds. This lesson discusses how to calculate interest on these securities including odd first payments, basis points, and amortization of premiums.
6. Yield Calculations for Municipal Securities
The lesson deals with different yield measures for municipal bonds. You'll learn how to calculate the yields and adjust the yields for tax rate and for the call option.
7. Municipal Securities Regulations: Prices, Commissions & Quotes
This lesson deals with MSRB rules related to municipal securities. Learn about MSRB rules D-12 (Definition of Municipal Fund Securities), G-13 (Quotations Related to Municipal Securities), and G-30 (Prices and Commissions).
8. MSRB Rules Related to Mutual Securities
Rule D-12 was added by the Municipal Securities Rulemaking Board (MSRB) in 2000 to provide regulations for municipal fund securities and to establish reporting requirements as defined by Form G-45. This lesson provides an overview of MSRB Rules D-12 and G-45.
9. Tax Treatment of Municipal Securities
In this lesson you will learn about characteristics of taxable bonds, municipal bonds and their tax treatment, other taxable situations, and exceptions.
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Other chapters within the Series 7 Exam: Study Guide & Practice course
- Advertising & Public Communication in the Securities Industry
- The New Issues Market
- New Issue Regulations in the Securities Industry
- Brokerage Account Types & Restrictions
- Retirement Plans & Tax-Advantaged Accounts
- Handling Customer Investment Information & Discretionary Accounts
- Obtaining Supervisory Approvals for Investment Accounts
- Analyzing Customer Investment Profiles
- Analyzing Customer Financial Statements
- Understanding Equity Securities
- Tax Treatment of Equity Securities Transactions
- Packaged Investment Products
- Variable Life Insurance & Annuities
- Real Estate Investment Trusts
- Direct Participation Programs
- Understanding Options in Investing
- Debt Securities
- Investing in Corporate Bonds
- Municipal Securities
- Registered Hedge Funds
- Asset-Backed Securities
- U.S. Government Agency Securities
- Investment Product Disclosures
- Customer Updates & Record Retention
- Customer Transactions & Confirmations
- Transactional Delivery Obligations & Settlement Procedures
- Investment Disputes & Customer Complaints
- Addressing Margin Issues