How Bonds are Sold - Your Transaction Costs

Municipal bonds can be bought in one of two ways: You can buy new issues of municipal bonds when they are first bought to market. Or you can buy municipal bonds in the secondary market. A new issue is analogous to an IPO; it is a brand new offering that is sold by underwriters to investors. With municipal bonds, there are a few new issues almost every day; however, there is no consistency in terms of what is or will be available.

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