- A general obligation municipal debt security issued by a municipality whose taxing power is limited to a specified maximum rate.
- an individual retirement account allowing a person to set aside after-tax income up to a specified amount each year. Both earnings on the account and withdrawals after age 59½ are tax-free.
- Trade on OTC market. Quoted in 1/8ths, a quote of "$95.50" means $955.
- A government agency that plays an important role in the secondary mortgage market it guarantees mortgage backed securities using FHA insured and VA guaranteed loans as collateral.
- competitive (by institutions - We want $x yielding y%) and non-competitive (by retail investors, who always get the amount they want (up to $10 MM) at a yield determined by competitive bidders. Highest yielding competitive bid that is accepted is assigned to all bidders, even if a competitive bidder had said they would take a lower yield. after primary auction, trade on OTC market.
- Funded w/after tax $. Growth, not cost basis, taxed at withdrawal IF less than 59.5. Like a ROTH IRA. Employer can DISCRIMINATE and offer these only to some employees, like a deferred compensation plan.
- A US Dollar held in a bank outside the US. Not just Europe.
- - Facilitates imports/exports- Maturities of 9 months or less- Can be held until maturity or traded
- minimum of $100K, also called "negotiable" CDs, short term < 1 year
- exempt from federal income taxes and may even be free from some state income taxes, if owned by residents of the state in which they are issued, such as California, New York, and others. Also exempt from SEC filing.
- pre-tax contributions. A retirement savings plan approved by the Internal Revenue Service that provides individuals with an immediate tax benefit. standard 401K or Traditional IRA. Governed by ERISA which seeks to protect employees from employer mismanagement. Must be a full time employee (1000+ hrs/year at least 21 yrs old), match must vest within 5 years.
- Municipal bonds backed by the full faith and credit of the issuer. generally issued in serial form. They are underwritten based a firm basis - that is, the underwriter pays for the bond issuance upfront.
- 5m = 5 $1000 par bonds, 10s = 10% interest rate, ABC debenture = Long term unsecured bond from ABC company, M= Matures in 2040, 95 1/2 = trading at $955
- 270 day maximum. zero coupon. exempt from SEC registration, large denominations
- ST Muni Debt. Interest rate resets every x weeks and bond holder can always put it back to govt at PAR cause they come with a put option.
- Quarterly, unaudited financial report
- bond denominated in a currency other than that of the country in which it is sold
- adds payable interest annually to principle of the bond, so you get it at maturity.
- What does "book" mean in the Price/Book ratio?
- all the same, no diff between coupon, current yield, ytm, ytc.