tax-exempt security (Meaning)
Wordnet
tax-exempt security (n)
a security that is not subject to taxation
Synonyms & Antonyms of tax-exempt security
No Synonyms and anytonyms found
tax-exempt security Sentence Examples
- Municipal bonds are tax-exempt securities that provide investors with a break from paying federal income tax on the interest earned.
- Non-profit organizations and educational institutions often issue tax-exempt securities to raise funds for their operations.
- Tax-exempt securities are typically offered at lower interest rates than comparable taxable securities, making them attractive to investors seeking tax-advantaged income.
- The tax-exempt status of a security can be revoked if the issuer does not meet certain requirements, such as using the proceeds for non-exempt purposes.
- Tax-exempt securities have a higher yield than taxable securities with similar risk profiles, making them an attractive investment option for investors in high tax brackets.
- Investors can diversify their portfolios and reduce their overall tax liability by investing in a range of tax-exempt securities.
- The tax-exempt status of certain securities can expire or be subject to change, so it is important for investors to carefully consider the tax implications before investing.
- Tax-exempt securities can be a valuable tool for investors seeking tax-free income, but it is crucial to understand the potential risks and limitations associated with these securities.
- Tax-exempt securities are a popular choice for retirement accounts, as they can help investors reduce their tax liability while saving for their golden years.
- Investors should consult with a financial advisor or tax professional to determine whether tax-exempt securities are suitable for their individual financial situation and investment goals.
FAQs About the word tax-exempt security
a security that is not subject to taxation
No synonyms found.
No antonyms found.
Municipal bonds are tax-exempt securities that provide investors with a break from paying federal income tax on the interest earned.
Non-profit organizations and educational institutions often issue tax-exempt securities to raise funds for their operations.
Tax-exempt securities are typically offered at lower interest rates than comparable taxable securities, making them attractive to investors seeking tax-advantaged income.
The tax-exempt status of a security can be revoked if the issuer does not meet certain requirements, such as using the proceeds for non-exempt purposes.
