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MuniPreferred‚ stock issued by the Nuveen municipal closed end funds. Major features of MuniPreferred include:
- AAA rating by S&P and Moody’s
- Dividends paid weekly
- Rate resets every seven days
- Purchase or sale through weekly auctions
- Every dollar invested in MuniPreferred is backed by at least twice that amount of fund assets
When more shares are offered for sale at auction than there are bids, the auction "fails." While in the past auction failures were very rare, in February 2008, most auctions of preferred shares issued by closed-end funds from Nuveen and other sponsors began to fail, due to liquidity concerns in the broader securities market. Currently nearly all auction-rate securities issued by closed-end funds continue to experience auction failures. For the most current information, please visit the auction rate securities resource center.
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