Commercial Paper Examples And Explanations

Commercial paper is issued by a wide variety of domestic and foreign firms including financial companies banks and industrial firms.

Commercial paper examples and explanations. Commercial paper in the global financial market is an unsecured promissory note with a fixed maturity of rarely more than 270 days. Major investors in commercial paper include money market mutual funds and commercial bank trust departments. Commercial paper is a money market security issued sold by large corporations to obtain funds to meet short term debt obligations for example payroll and is backed only by an issuing bank or company promise to pay the face amount on the maturity date.

Example of commercial paper an example of commercial paper is when a retail firm is looking for short term funding to finance some new inventory for an upcoming holiday season. Save money on commercial paper companies can save extra cash and earn a good return.