commercial papercommercial paper
- negotiable instruments, as bills of exchange, used regularly in the course of business
- Finance short-term promissory notes issued by large corporations and sold to investors either directly by the issuer or through dealers
An unsecured debt instrument issued by a business to finance short-term cash needs, often traded in money markets.
- (finance) A negotiable instrument with short maturity.
- Only well-known retailers have a chance to bypass the banks and issue their own commercial paper.
commercial paper - Investment & Finance Definition
An unsecured prom-issory note that is typically sold by a corporation. Commercial paper has a fixed maturity of 1 to 270 days and is usually sold at a discount from face value.
commercial paper - Legal Definition
A negotiable instrument evidencing a debt to be unconditionally paid on demand or at a specified time and payable to order or to the instrument’s bearer; includes such instruments as certificates of deposit, checks, drafts, and notes. The use of commercial paper is generally governed by the Uniform Commercial Code. Also called paper. See also accommodation paper and chattel (chattel paper).