Final answer:
An investor in a new issue of municipal bonds should receive the official statement before purchasing the bonds. The official statement provides detailed information about the bond offering and helps investors make informed decisions.
Step-by-step explanation:
An investor in a new issue of municipal bonds should receive the official statement before purchasing the bonds. The official statement is a document that provides detailed information about the bond offering, including the terms, risks, and financial information of the issuer. It is typically made available to potential investors through the underwriters or brokers involved in the bond offering.
For example, if a municipality plans to issue bonds to finance a new infrastructure project, it will prepare an official statement that provides information about the project, the municipality's financial situation, and other relevant details. The official statement helps investors make informed decisions about whether to invest in the municipal bonds.
Receiving the official statement allows investors to review and analyze the information before deciding whether to invest in the municipal bonds. It is an important step in the due diligence process for investors.