Series 7 - General Securities Representative Exam

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What is limited in an LTGO?

The coterminous aspect of the offering
A
The maximum interest rate that an investor can receive on a particular issue
B
The type of tax that backs the particular bond issue
C
The number of syndicate members offering the issuer per MSRB rules
D
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Explanations

In an LTGO (Limited Tax General Obligation) Bond, the type of tax that can be used for the issue is limited. It is usually are particular tax (for example a tourism tax). They are not backed by all taxes within the municipality

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