Municipal Bonds Case Study

543 Words 3 Pages
1. What are municipal bonds? Describe two different types of municipal bonds. The two most common types of municipal bonds are the following: General obligation bonds are issued by states, cities or counties and not secured by any assets. Instead, general obligation are backed by the “full faith and credit” of the issuer, which has the power to tax residents to pay bondholders.
2. What is asset allocation? Why is this used? This is a technique used to spread your investment dollars across several asset categories. The investment categories may include cash and cash alternatives, bonds, stocks, real estate, mutual funds, imaginable. The goal is to maximize your return.
3. What are common stocks? What are the advantages and disadvantages of

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