What are bond denominations typically sold in?

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Bond denominations are typically sold in increments of $1,000. This standardization facilitates increased marketability and liquidity of municipal bonds, making them more accessible to a wider range of investors. The $1,000 denomination is commonly used, as it allows individual investors, including both retail and institutional, to more easily purchase and sell bonds without the barrier of high minimum investment requirements that larger denominations would impose.

While larger denominations such as $5,000, $10,000, or $50,000 do exist, they are less common for the general municipal bond market. These higher denominations are generally utilized in specific types of securities or for institutional investors who can manage larger sums of capital more efficiently. The prevalence of the $1,000 increment supports a more diverse investment base and aligns with the needs of the typical buyers in the municipal bond market.

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