small-issue bond

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Small-Issue Bond

Part of a small municipal bond that is used for private purposes. As a municipal bond, the interest is tax-deductible; however, there is a limit on the amount of debt and number of issues a municipality is allowed to use for private purposes and still qualify for the deduction.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

small-issue bond

A bond that is part of a small-sized municipal bond issue for private purposes such that interest on the bond qualifies for federal tax exemption. Municipalities are limited as to the size of such an issue and the total number of issues if the bonds are to pay tax-exempt interest.
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.
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