Series 50: Open Market

Taken from our Series 50 Online Guide

Open Market

Municipalities can also invest in open-market Treasury securities that meet their yield restriction limitations. This can consist of Treasury bills, bonds, and notes that the issuer buys through a securities dealer. The exact price is determined through a competitive bidding process between at least three securities dealers, as stipulated by the IRS. This process is intended to ensure that the security is purchased at fair market value.

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