Tax-exempt security

What is Tax-exempt security?

Tax-exempt security meaning in finance terminology / glossary / dictionary is:
Tax-exempt security is a mutual fund or bond that produces income which isn’t subject to federal income taxes. Tax-free municipal bonds are an example. These are fixed-income securities issued by state, county, city, or local governments. Mutual funds that invest strictly in tax-exempt securities would also be tax-exempt.

 

reference: MortgageLoan.com

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