Investor Glossary-general obligation bondInvestor Glossary-general obligation bondInvestor Glossary-general obligation bondInvestor Glossary-general obligation bondInsightful stock market charts - Click here
investor
  Categories      # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z     
Term of the Day Email this Definition Link to this Definition

General Obligation Bond

FYI - For 2011, Dow up, Dogs of the Dow up more (double digits)
 

A general obligation bond is a municipal bond backed by the taxing and revenue power of the issuing municipality. For this reason a general obligation bond is sometimes referred to as a full-faith-and-credit bond. Because a general obligation bond is backed by the taxing power of a municipality, it is generally considered to be of higher quality (less risky) than a bond issued for a particular project. For this reason a general obligation bond often has a lower rate of return than a more risky bond. In most cases the interest received from a general obligation bond is free from federal income tax and if the general obligation bond is purchased in the state in which it is issued it is also free from local taxation. This double-tax-free status also makes a general obligation bond a desirable instrument for investors. A general obligation bond is sometimes referred to as a "muni."



Rate this General Obligation Bond definition...



Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: inflation, FICO score, EBITDA, labor relations, option premium, 1035 exchange, 144a, deferred revenue, limit order, balance sheet, ex-dividend date, dividends payable, command economy, current ratio, phantom income, required rate of return, average price per share, real GDP, FTSE, stock split, deferred tax, diluted share, margin rate, class C shares, debt service coverage, minority interest, open position, annual return, ex-dividend, 401a, risk management, reverse mortgage, covered put, in escrow, LIBOR, implied volatility, wholly-owned subsidiary, irrevocable trust, quality assurance, stock market close, liquidity ratio, cancelled check, 1031 exchange, APR, Key Rate Duration, Zero Cost Collar, per diem, retained earnings, VIX


Home | Term of the Day | Suggest a Term
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Chart of the Day | Dogs of the Dow | Art of the Home
©2004-2012 Investor Glossary - All rights reserved - Terms of Use