What are munifund term preferred shares?
Munifund term preferred shares are exchange-listed closed-end fund preferred shares that have a fixed dividend rate set at the time of issuance. Munifund term preferred shares have a mandatory redemption period of five years (unless they are redeemed or repurchased earlier). Unlike fixed rate preferred stock previously issued, munifund term preferred shares were created for issuance by closed-end funds investing in municipal bonds.
