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.
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Related Terms
paper, collateral surety, debt instrument, Eurocommercial paper, paper dealer, prime paper
'commercial paper
' appears in the definitions of these terms on BusinessDictionary.comprime paper, Standard & Poor's Ratings, straight paper, contract law, corporate debt, and 
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