MSRB Provides Guidance To Investors Considering Municipal Bonds

Date: January 20, 2010

Contact:             Jennifer A. Galloway, Chief Communications Officer
                         (703) 797-6600

Fact Sheet Has Seven Questions Investors Can Ask Their Financial Professional

Alexandria, VA – The Municipal Securities Rulemaking Board (MSRB) today released a fact sheet intended to provide individual investors with a starting point for a discussion with their financial professional about factors to consider when investing in bonds. Seven Questions to Ask When Investing in Municipal Bonds provides investors with timely and useful information such as:

  • How to access key information and trade data about municipal bonds free of charge
  • How to find out if a bond’s price is fair
  • Why an investor’s individual tax-status may impact the return on a municipal investment
  • Why investors should ask how their financial professional is compensated
  • What duties an investment professional has toward investors considering municipal bonds

The MSRB is providing this information as part of its mission to protect and educate investors. Seven Questions to Ask When Investing in Municipal Bonds is available here and in the Education Center of the MSRB’s Electronic Municipal Market Access (EMMA) website at  

EMMA provides access, free of charge, to disclosure documents associated with municipal bonds, real-time trade data for approximately 1.2 million outstanding municipal bonds, as well as current interest rates for auction rate securities and variable rate demand obligations.  EMMA’s Education Center provides useful information about investing in municipal bonds and 529 college savings plans, and a Glossary of Municipal Securities Terms.

The MSRB protects investors, state and local governments and other municipal entities, and the public interest by promoting a fair and efficient municipal securities market. The MSRB fulfills this mission by regulating the municipal securities firms, banks and municipal advisors that engage in municipal securities and advisory activities. To further protect market participants, the MSRB provides market transparency through its Electronic Municipal Market Access (EMMA®) website, the official repository for information on all municipal bonds. The MSRB also serves as an objective resource on the municipal market, conducts extensive education and outreach to market stakeholders, and provides market leadership on key issues. The MSRB is a self-regulatory organization governed by a 21-member board of directors that has a majority of public members, in addition to representatives of regulated entities. The MSRB is overseen by the Securities and Exchange Commission and Congress.