commercial paper

commercial paper definition - business

commercial paper

A short-term unsecured promissory note issued by a finance company or a relatively large industrial firm. The notes are issued in large denominations ($25,000 minimum) and generally sold at a discount from face value with maturities ranging from 30 to 270 days. Commercial paper is a popular investment for money market mutual funds. Used interchangeably with the term paper. See also prime paper.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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