Commercial Paper
/ˈkɒmɜːrʃəl ˈpeɪpər/
Definitions
- (n.) A negotiable, unsecured promissory note issued by corporations to finance short-term credit needs.
The company raised funds quickly by issuing commercial paper to investors.
Forms
- commercial papers
Related terms
See also
Commentary
Commercial paper must be carefully drafted to specify maturity and payment terms; unlike secured debt, it relies primarily on issuer creditworthiness.
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