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Ch 19: Municipal Securities

About This Chapter

In this chapter, you can review information regarding municipal securities, including bonds and municipal obligations, with interesting and informative study materials. These mobile-friendly resources can be used to study for an exam or bolster professional skills.

Municipal Securities - Chapter Summary

If you are planning to take a test requiring a thorough knowledge of municipal securities, this chapter offers a great source of review. The lessons provide information about different types of municipal bonds, certificates of participation, and features of municipal securities, such as call features and refunding methods. After working through this chapter, you should be able to:

  • Define types of municipal bonds and short-term municipal obligations
  • Identify what makes zero coupon bonds unique
  • Describe types of municipal securities, including variable rate, auction rate, and taxable securities
  • Explain the various characteristics and types of taxable municipal securities
  • Express the benefits associated with tax-advantaged plans, such as 529 plans and ABLE accounts
  • Tell about types of local government investment pools and how they work
  • Recognize the factors that play into the marketability of municipal bonds

The lessons in this chapter are engaging, and help you to gain mastery of the topics. Topics are broken into short lessons, so that those who are studying for tests can break down their preparation. Quizzes are available at the end of the lessons to help you to be sure that you're on the right track.

15 Lessons in Chapter 19: Municipal Securities
Test your knowledge with a 30-question chapter practice test
Mutual Fund Securities: Definition & Examples

1. Mutual Fund Securities: Definition & Examples

Mutual funds are an investment vehicle for smaller investors, and provide investment diversity, albeit at a higher fee. This lesson discusses mutual funds generally and different types of funds.

Characteristics of Municipal Fund Securities

2. Characteristics of Municipal Fund Securities

Municipal fund securities are not the same as traditional municipal securities and include: local government investment pools, 529 educational accounts, and ABLE accounts (for those with disabilities).

Common Types of Municipal Bonds: Purpose & Characteristics

3. Common Types of Municipal Bonds: Purpose & Characteristics

Municipal bonds and notes are financial instruments issued by various governments to raise funds that they need to operate. This lesson will discuss the different types of bonds and notes.

Special Types of Municipal Bonds: Purpose & Characteristics

4. Special Types of Municipal Bonds: Purpose & Characteristics

This lesson deals with special types of municipal bonds. Learn about special tax, special assessment, moral obligation, advance or pre-refunded, and double-barreled bonds.

Zero Coupon Bond: Definition, Formula & Example

5. Zero Coupon Bond: Definition, Formula & Example

Zero coupon bonds are an alternative investment type compared to traditional bonds. In this lesson, we will explore what makes these investments unique and how investors can calculate a purchase price or yield of these bonds.

Variable Rate Securities: Definition & Characteristics

6. Variable Rate Securities: Definition & Characteristics

In this lesson, you will learn about municipal securities and variable rate securities. You will also learn the three common types of municipal variable rate securities.

Auction Rate Securities: Definition & Characteristics

7. Auction Rate Securities: Definition & Characteristics

The lesson focuses on auction rate securities (ARS), one of the three types of municipal variable rate securities. You'll learn the characteristics of auction rate securities and their advantages and disadvantages.

Taxable Municipal Securities: Definition & Characteristics

8. Taxable Municipal Securities: Definition & Characteristics

Taxable municipal bonds are municipal bonds issued by local municipalities for purposes that do not qualify for federal tax exemption of the interest payments. They still are highly attractive to investors, however. Learn about them in this lesson.

Certificates of Participation (COPs): Definition & Characteristics

9. Certificates of Participation (COPs): Definition & Characteristics

This lesson deals with certificates of participation (COPs) issued by local governments. Learn how to identify and describe key characteristics of certificates of participation.

529 Prepaid Tuition Plans: Definition & Overview

10. 529 Prepaid Tuition Plans: Definition & Overview

The 529 Prepaid Tuition Plans offer tax benefits and allow individuals to lock in future college expenses at today's rates. This lesson will explain what the 529 Prepaid Tuition Plans are, how they work, and what they cover.

Local Government Investment Pools (LGIPs): Definition & Types

11. Local Government Investment Pools (LGIPs): Definition & Types

Local government investment pools are a means for local governments to invest excess tax revenues in a fund that will be liquid but provide the government additional income until the money is needed.

ABLE Accounts: Definition & Overview

12. ABLE Accounts: Definition & Overview

ABLE accounts are accounts set up to provide for the care of a seriously disabled person. An ABLE account allows for contributions for the care of the disabled person to be invested tax free for future needs.

Municipal Securities: Call & Put Features

13. Municipal Securities: Call & Put Features

In this lesson you will learn about the basic structure of municipal securities, the concept of call and put features, and the different types of provisions that allow bonds to be called in different ways.

Refunding Methods for Municipal Securities

14. Refunding Methods for Municipal Securities

Municipal bonds are issued sometimes with a call provision and a maturity date, at which time they can be paid off. Refunding is a process or method of accruing the funds to pay off the retiring bonds prior to the maturity date.

Factors Affecting the Marketability of Municipal Bonds

15. Factors Affecting the Marketability of Municipal Bonds

Municipal bonds are a major source of financing for all government bodies. For that reason, securities professionals need to understand what makes municipal bond issues attractive and marketable to the investment community.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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