commercial paper Definition

commercial paper

Definition

An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts receivable and inventory. Maturities typically range from 2 to 270 days. Commercial paper is available in a wide range of denominations, can be either discounted or interest-bearing, and usually have a limited or nonexistent secondary market. Commercial paper is usually issued by companies with high credit ratings, meaning that the investment is almost always relatively low risk.

Reproduction of all or part of this glossary and/or this page, in any format, without written consent is prohibited. If you have questions about this dictionary please feel free to contact us feedback\@\investorguide.com

Related Terms

collateral surety -

debt instrument -

Eurocommercial paper -

Related Terms on BusinessDictionary

money market fund (MMF)
prime paper
Standard & Poor's Ratings
straight paper
conduit finance
off balance sheet conduits
contract law
CP Index

discount house
government paper
law of contract
corporate debt
money market instruments
money market
paper

Popular 'Bonds' Terms

bond
debt/equity ratio
security
market capitalization
finance

yield
surety bond
derivative
debenture
risk

commercial paper in the news

Tools

Enter your email address to get our free Term of the Day newsletter!

commercial paper is ...

... part of the Bonds subject.

Nearby Terms

commercial hedger
commercial lending
commercial loan
commercial mortgage
commercial mortgage-backed security
commercial paper
Commercial Paper Funding Facility
commercial property
commercial wells
commercial year
commingled fund

Search volume for commercial paper

commercial paper is mentioned in these Investment Tips

More Investment Tips

Review the unprecedented moves the Fed & Treasury took to bring the financial markets back from the precipice