Commercial Paper

commercial paper investment & finance definition
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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
a short term note issued by corporations to allow them to satisfy their immiediate financial needs. It is sold at a discount and matures within twelve months.
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Commercial papers are debt instruments that are often utilized to meet short-term credit needs. As an unsecured obligation that is often utilized as an investment in a money market account, the duration period for a commercial paper is limited.

Commercial paper is a money-market security issued by large banks and corporations. It is generally not used to finance long-term investments but rather to purchase inventory or to manage working capital.

Short-term Debt instruments-such as commercial paper, banker`s acceptances, and Treasury bills-that Mature in less than one year. Also known as Money market Instruments or Cash reserves.

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COMMERCIAL PAPER (CP) - Short-term, unsecured promissory notes, usually backed by a line of credit with a bank, that mature within 270 days.

Commercial Paper
Short-term promissory notes issued in bearer form by large corporations, with maturities ranging from 5 to 270 days.

Commercial Paper
Debt instruments issued by companies to meet short-term financing needs.
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Commercial Paper Unsecured debt (IOU), issued by large corporations, with maturities (at time of issue) less than a year. They can be traded on OTC.
Commission The broker=s fee for purchasing or selling assets.

Commercial paper A short-term promissory note issued by a bank or large industrial firm that is not backed by specific assets. Payment on commercial paper is basically assured by the promise of the borrower.

Commercial paper: A negotiable corporate promissory note with a term of a few days to a year. It is generally not secured by company assets.

Commercial Paper
Short-term and unsecured promissory notes issued by corporations with very high credit standings.
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Commercial Paper
Short-term debt securities issued by corporations, banks, and other borrowers.

Commercial paper: A short-term, unsecured financing vehicle used typically by corporations to cover immediate credit needs. It is also used by money markets as a short-term investment vehicle.

Commercial Paper
A short-term debt instrument issued by corporations. Its rate of interest is set at issuance and can be realized only if held to maturity.

Commercial paper
Unsecured short-term promissory notes used by companies to obtain cash. They are sold through dealers in the open market or directly to investors.

Commercial paper (CP): CP is a short term negotiable debt instrument. Normally the maturity does not exceed 365 days. It can be issued by a bank or a corporate under a CP programme.
The programme will have several dealers.

Commercial Paper (CP)
CPs are negotiable, short-term, unsecured, promissory notes with fixed maturities, issued by well rated companies generally sold on discount basis.
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Commercial Paper - A short-term financial obligation issued by a company typically for short-term financing needs.
Commission - The fee paid to a broker for handling the sale or purchase of a security or other property.

Commercial Paper: An unsecured promissory note with a fixed maturity of 270 days or less.

Commercial paper - Usually they are short term investments similar to bonds, issued by a company that needs to raise money; and is willing to pay an interest rate. These are components to some unit trusts.

commercial paper
Short term, unsecured bond notes issued by a corporation or a bank to meet immediate short term needs for cash. Maturities typically range from 2 to 270 days.

Commercial paper: Short-term business notes, drafts, and acceptances maturing in 270 days or less.
Commission: The fee charged by a broker/dealer for acting for others in executing buying or selling orders.

Commercial paper
To help meet their immediate needs for cash, banks and corporations sometimes issue unsecured, short-term debt instruments known as commercial paper.

Commercial Paper: Commercial paper is defined as unsecured short-term obligations with maturities ranging from one to 270 days issued by banks, corporations and other borrowers.

Eurocommercial Paper
An unsecured, short-term loan issued by a bank or corporation in the international money market, denominated in a currency that differs from the corporation's domestic currency.
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Euro-commercial paper
Short-term notes with maturities up to 360 days that are issued by companies in international money markets.

Commercial paper program (CP)
Commercial paper (CP) is a short-term unsecured debt instrument normally issued at a discount and redeemed at nominal value. It is a flexible way of obtaining short-term funding on the capital markets.

Commercial Paper
Promissory notes usually with up to 270 day maturity, sold by companies or institutions for working capital. Widely used in the US.
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Eurocommercial paper The commercial paper issued in a Eurocurrency. Eurocredit Lending done using Eurocurrency. Eurocurrency The currency deposited by firms and federal governments in banks outside their...

Related: Straddle Commercial paperShort-term unsecured promissory notes issued by a corporation. The maturity of commercial paper is typically less than 270 days; the most common maturity range is 30 to 50 days or less.

Commercial Paper Is an unsecured debt issued by corporations to finance its short-term needs. Maturity ranges from 2 to 270 days. Commodity A general futures market, without reference to any particular delivery month.

Fixed income encompasses tradable instruments ranging from very short term paper such as T-Bills, Eurodollars, and Commercial Paper out to long-term debt in the form of Treasury and Corporate Bonds, ...

Electronic Communications Networks (ECNs): Alternative trading systems that have sufficient volume in nongovernment securities and commercial paper that they must be registered with the SEC.

Investments in domestic or foreign certificates of deposits, repurchase agreements, commercial paper, and short-term U.S. Government or agency obligations are some of the more common portfolio components.

Purchase of corporate bonds, commercial paper, U.S. Treasury securities, municipal general obligation bonds by a commercial bank or dealer bank for its own account, or for resale to investors.

A mutual fund is an entity which primarily owns "financial assets" or capital assets such as bonds, stocks and commercial paper. The net asset value of a mutual fund is the market value of assets owned by the fund minus the fund's liabilities.

Stocks, bonds, short-term commercial paper, and certificates of deposit are all considered marketable securities because there is a public demand for them and because they readily convert into cash.

Money market funds typically invest in government securities, certificates of deposit, commercial paper of companies, or other highly liquid and low-risk securities. They attempt to keep their net asset value (NAV) at a constant $1.

""Equivalents"" means things like certificates of deposit, commercial paper and the like, which can quickly and easily be converted into cash. Cash is king, as the saying goes, and a company with a lot of cash is in a formidable position.

The prime investment targets for the money market funds are securities, known for their low-risk, such as certificate of deposit, government securities, and commercial papers.

Money market funds invest in assets like certificates of deposits, government securities, commercial paper of companies, and other low-risk, highly-liquid securities.

Those investments include Treasury bills, certificates of deposit (CDs), commercial paper, and other debt issued by corporations and governments. These investments are also known as money market instruments.

Cash investments
Short-term debt instruments such as commercial paper and Treasury bills that mature in less than a year. Also known as money market accounts or cash reserves.

Also look at 6 month commercial paper relative to the 6 month T-bills. By doing this comparison along other economic data, you will better see where economic trends are drifting.

High credit ratings in the bond and commercial paper markets
Large size relative to American businesses as a whole in terms of revenue and market capitalization
Diversified product lines (e.g., General Electric) and / or geographic location (e.g.

Money Market: The market in which short-term debt instruments (Treasury bills, commercial paper, banker's acceptances, certificates of deposit, discount note of federal agencies, etc.) are issued and traded.

In 1987, the Federal Reserve was pressed by the predecessors of Citigroup (NYSE: C ) and JPMorgan Chase (NYSE: JPM ) to permit banks to deal in commercial paper, mortgage-backed securities, and other instruments.

government securities, certificates of deposit, and commercial paper. A money market fund is a mutual fund which strives to make a profit by buying and selling various forms of money rather than buying and selling shares of ownership in corporations.

A mutual fund investing in short term money market instruments, such as certificates of deposit, treasury bills and commercial paper. The fund's net asset value is usually $1 a share and its interest rate goes up or down.

Debt securities
IOUs created through loan-type transactions-commercial paper, bank CDs, bills, bonds, and other instruments.

MONEY MARKET FUND A mutual fund that invests only in short term securities, such as bankers acceptances, commercial paper, repurchase agreements and government bills.

Written promise to repay a debt; for instance, a bill, note, bond, certificate of deposit or commercial paper.
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These include federal government treasury bills, short-term Government of Canada bonds, commercial paper, bankers' acceptances and guaranteed investment certificates.

The Act held that role of the Federal Reserve was "to furnish an elastic currency, to afford the means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes".

As used by the CFTC, this term generally refers to any futures or option contract that is not based on an agricultural commodity or a natural resource. It includes currencies, securities, mortgages, commercial paper and stock indexes of various kinds.

MONEY MARKET
Money markets are for borrowing and lending money for three years or less. The securities in a money market can be U.S. government bonds, Treasury Bills and commercial paper from banks and companies.

Government securities
Municipal bonds
Corporate bonds
U.S. Savings Bonds
Mortgage and asset-backed securities
Government agency securities
Treasury bills
Bank certificates of deposit
Commercial paper ...

The corresponding transaction is symbolized and recorded in commercial paper or certificates of deposits. In some markets, the papers are scrapped and are replaced by scritless securities or computer records.

It is the act of reducing the use of borrowed funds. These borrowed funds can exist in the form of equity issued to stockholders, bonds issued to investors, issuance of commercial paper, and taking out syndicated bank loans to name a few.

See also: Commercial, Market, Securities, Interest, Bonds