Another bond issue is taxable or
tax-exempt securities.
Both closed end funds aim to provide high current income exempt from federal income tax by investing in a diversified portfolio of investment-grade
tax-exempt securities.
During 2008, income from
tax-exempt securities totaled $11.
These costs can be considerable, since many
tax-exempt securities are illiquid.
Those certificates -
tax-exempt securities that don't include a promise to repay and typically use the project being constructed as collateral - carry higher interest rates than general obligation bonds, which are fully backed by the state's credit and, ultimately, its general fund.
The outside funds are invested in
tax-exempt securities.
In addition to its Corporate Finance practice, it is known for its Municipal Bond Department, which works closely with an array of municipal clients and institutional buyers of
tax-exempt securities and other financial products.
Hence, section 382 limits the incentive of corporations to "traffic" in, or purchase, the net operating losses of target companies by limiting the acquirer to an expected rate of return no better than can be achieved by parking an equivalent amount of money in
tax-exempt securities.
The legislative and regulatory environment for
tax-exempt securities seems to be in a constant state of flux, requiring vigilance by issuers to ensure they understand the current rules and regulations.
Even if the investment strategy is not growth-oriented, investing trust assets in
tax-exempt securities should be avoided in almost all cases because of the unique tax structure of charitable remainder trusts.
Borrowing to purchase or carry
tax-exempt securities.
