tax-exempt security

tax-exempt security definition - finance
An investment that is not subject to tax at the federal, state, or local level. Typically, the only tax-exempt security is a municipal bond, which is offered by a local government to fund municipal needs. Mutual funds may be tax-exempt if they invest in tax-exempt securities.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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