How Do Municipal Revenue Bonds Work?

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Municipal revenue bonds work by allowing the investor to put money into the municipality in order to support the operations within that municipality. Read the paperwork carefully for a municipality revenue bond to ensure the investment is secure with advice from an investments manager in this free video on investing.

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Video Transcript

Okay, how do municipal revenue bonds work? There are numerous types of muni bonds or municipal bonds, and they'll be to support different projects, different types of operations in in a municipality. The revenue bonds go directly against the the the revenue that's being brought in by that municipality. So revenue bonds, sometimes, because they aren't going for a specific project, are seen as a little less secured in that the revenue is going to come from maybe bringing in different stores and different businesses that will pay more taxes, bring more revenue into the munic municipality. And then, buying the bond what you're doing is supporting the the municipality, and doing the investment necessary to make that stuff happen. So, a revenue bond is a little different than other muni bonds and it's something to... Again, read the paperwork that comes with the muni bond, and and look at really where that revenue is going to come from to make sure that your investment in the municipal revenue bond is secure.

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