Which elements are important for good disclosure in municipal bonds?

Good disclosure in municipal bonds is critical for transparency and informed decision-making by investors. The correct choice emphasizes the importance of resolutions, opinions, and financial statements.

Resolutions provide official documentation of actions taken by the governing body related to the issuance of bonds, offering insights into the authority and purpose of the bonds. Opinions, typically provided by bond counsel, address the legality and tax status of the bonds, assuring investors that the bonds are legitimate investments. Financial statements present vital information regarding the financial health of the issuing municipality, allowing investors to assess risks and the potential for repayment.

While other options may provide valuable information, they do not capture the core components necessary for robust disclosure in the context of municipal bonds. For instance, sales reports and projections, market analyses, and operational reviews focus more on operational aspects, market conditions, or specific projections rather than the legal and financial frameworks essential for investor assurance. Therefore, the combination of resolutions, opinions, and financial statements is paramount for good disclosure practices in the municipal bond market.