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muni

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Municipal Bond

A bond issued by a local or state government. Municipal bonds are usually used to raise capital for improvements in infrastructure or other aspects of the municipality. For example, a city or school district may issue a bond to build a new school or a new playground. Municipal bonds are exempt from federal income taxes and sometimes from state and local taxes as well. Municipals usually pay lower coupons than corporate bonds, but because the yield is tax-free, the after-tax basis may be higher for a municipal bond. Risk varies with the municipality and the particular type of municipal bond. It is sometimes called a municipal improvement certificate.
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muni

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Municipal bond (muni).

Municipal bonds are debt securities issued by state or local governments or their agencies to finance general governmental activities or special projects.

For example, a state may float a bond to fund the construction of highways or college dormitories.

The interest a muni pays is usually exempt from federal income taxes, and is also exempt from state and local income taxes if you live in the state where it was issued.

However, any capital gains you realize from selling a muni are taxable, and some muni interest may be vulnerable to the alternative minimum tax (AMT).

Munis generally pay interest at a lower rate than similarly rated corporate bonds of the same term. However, they appeal to investors in the highest tax brackets, who may benefit most from the tax-exempt income.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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References in periodicals archive
Speaking about the Muni Working Group's efforts, Max added: "I support them and wish them well.
A spokesman for RCT council said: "The council recognise the significant public support for the Muni as an arts venue and the council is working, within the financial restrains we face at this current time, to support a viable and sustainable future for the facility."
'With MUNI I try to appeal with what little actions people can take because not everyone is going to be an all-out environmentalist,' she said.
So my goals are just to get through it and be able to get my card by the end of the year and better my game," said Muni who was introduced to golf by her dad.
I was just kind of able to play my own golf," Muni He said after her round on Wednesday.
There are several interesting tax effects within munis. Even though a muni might be tax-exempt at issue, investors trading munis in secondary markets may be taxed on their investment in this bond.
It fell to Muni skip Gary Langford, with Roger Reade, Nigel Walker and Alex Lewis, to limit the damage on their rink to no more than ten shots; this they did perfectly restricting the visitors to a 20-11 win to give the Muni a 4-2 overall victory.
On rink two, the hosts' Clive Burbage skipped Jeannette Douglas, Barbara Harsant and John Hanmore to a 19-16 victory over Maureen Edwards, Bill Simpson, Yvonne and Tony Bromfield, while on rink 3 the Lillington four of Jenny Corn, John Buggins, Chris Richards and Mike Cox crushed the Muni's Brian Trindle, Mo Yeomans, Brian Nock and Janet Tricklebank 21-8.
Investors' income from munis is generally exempt from federal taxes.
Summary: Egypt, Italy and Libya will together discuss the reconstruction of Libya during a visit by the Italian foreign minister to Cairo later this week, according to the Egyptian ambassador to Italy, Muhammad Farid Muni.
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