Definition of 'commercial paper'

Word Frequency

commercial paper in British

noun

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

Word Frequency

commercial paper in American

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

Word Frequency

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 from a 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.

Trends of 'commercial paper'

Used Rarely. commercial paper is in the lower 50% of commonly used words in the Collins dictionary

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Nearby words of 'commercial paper'

Related Terms of 'commercial paper'

euro-commercial paper

Source

Definition of commercial paper from the Collins English Dictionary

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