Yes, Limited Tax Bonds can be traded on secondary markets. Once these bonds are initially issued by the municipality or government entity and purchased by investors, they become available for trading among investors on the secondary market. The secondary market provides a platform where buyers and sellers can exchange these bonds after their initial issuance.

Trading Limited Tax Bonds on the secondary market offers several advantages to investors. It provides liquidity, allowing investors to buy or sell their bonds at prevailing market prices, even before the bonds reach their maturity date. This liquidity ensures that investors are not locked into a long-term investment and can adjust their portfolios based on changing financial conditions.

The prices of Limited Tax Bonds in the secondary market are influenced by various factors, such as changes in interest rates, the issuer's creditworthiness, and overall market conditions. Investors should carefully assess these factors before participating in the secondary market for Limited Tax Bonds to make informed decisions about buying or selling their holdings.