Tax-exempt bond, for short

Tax Exempt

Exempt from taxes, a common term for those who pay no income tax or few taxes.Exemptions from taxes are sometimes granted to certain groups, such as pensioners or students.Exempt definitions can vary depending on the country or tax jurisdiction.

Bond

Bonded in debt, a financial obligation to repay the principal amount plus interest.Bonds are often used by governments and companies to raise capital.Bonds can be traded on financial markets, offering investors a return on investment.

Short

Short sale, a financial transaction involving the sale of a security below its market value.Short sellers bet that the price of a security will decline in the future.Short selling is often seen as a speculative practice, rather than a legitimate investment strategy.

Index

Index-linked, a financial product tied to a specific index, such as a stock market index.Index-linked bonds offer a fixed return that grows over time, linked to the performance of the underlying index.Index linked investments can be a popular option for investors seeking predictable returns.

Derivative

Derivatively traded, financial instruments that derive their value from an underlying asset.Diversified portfolios can include a range of derivative instruments, such as futures and options.Derivatives can be used to hedge against price risk, but they can also amplify losses.

Option

Optioned in value, a financial instrument giving the holder the right to buy or sell an underlying asset.Options can be used to speculate on price movements or to hedge against potential losses.Options can be traded on financial markets, offering investors a flexible investment tool.

Leverage

Leveraged, a financial instrument using borrowed money to amplify returns.Leveraged investments can be used to speculate on price movements, but they can also amplify losses.Leveraged investments are often subject to stricter regulations than other types of investments.

Collateral

Collateralized, a financial instrument secured by a security or other asset.Collateralized loans can be used to raise capital, but they can also be used for more speculative purposes.Collateralized investments can be a popular option for investors seeking flexible financing.

Compressed

Compressed in value, a financial instrument tied to an underlying asset but with a higher yield.Compressed bonds offer a fixed return that grows over time, tied to the performance of the underlying index.Compressed investments can be a popular option for investors seeking predictable returns.