Interest is taxable by federal, state, and local governments, but states generally do not tax interest income to residents. States may tax the interest on issues of other states. Corporate bonds Issued by large corporations. Issuers must be publicly traded companies. Repayment of principal and interest is backed only by the profitability of the corporations.
Interest is taxable by federal, state, and local governments.
The U.S. government is the single largest issuer of notes. A share of stock represents equity ownership in a company. It entitles the owner to certain dividend and voting rights. The specialist is a dealer who makes a market in one or a few particular stocks. The organized exchanges may be national, e.g., the New York Stock Exchange and the American Stock Exchange , or they may be regional, e.g., the Philadelphia Exchange or the Pacific Exchange.