a short-term negotiable document, such as a bill of exchange, promissory note, etc, calling for the transference of a specified sum of money at a designated date
commercial paper in American English
US
1.
negotiable instruments, as bills of exchange, used regularly in the course of business
2. Finance
short-term promissory notes issued by large corporations and sold to investors either directly by the issuer or through dealers
commercial paper in Finance
(kəmɜrʃəl peɪpər)
Word forms: (regular plural) commercial papers
noun
(Finance: Investment)
Commercial paper refers to short term loans issued by large corporations without any security.
Since it is not backed by collateral, only firms with excellent credit ratings froma recognized rating agency will be able to sell their commercial paper at a reasonable price.
The most common maturity range of commercial paper is 30 to 50 days or less.
Commercial paper refers to short term loans issued by large corporations without any security.