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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Industrial Development Bond  

Definition 1.

A municipal bond secured by the creditworthiness of a private business rather than a government entity. These bonds are issued by local governments to attract new businesses or help local businesses expand. Such bonds offer the usual tax-exempt interest, but are generally considered riskier than bonds secured by the full taxing power of a stable, solvent local government.
 
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