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

  1. Municipal bonds are tax-exempt securities that provide investors with a break from paying federal income tax on the interest earned.
  2. Non-profit organizations and educational institutions often issue tax-exempt securities to raise funds for their operations.
  3. Tax-exempt securities are typically offered at lower interest rates than comparable taxable securities, making them attractive to investors seeking tax-advantaged income.
  4. 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.
  5. 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.
  6. Investors can diversify their portfolios and reduce their overall tax liability by investing in a range of tax-exempt securities.
  7. 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.
  8. 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.
  9. 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.
  10. 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.