Commercial Paper Is An Example Of A Capital Market Instruments
Which of the following is an example of a capital market instrument.
Commercial paper is an example of a capital market instruments. Commercial paper is defined as a money market instrument that is used for obtaining short term funding and is usually in the form of a promissory note issued by investment grade banks and corporations. Money markets are markets for a. Treasury bills c certificates of deposits d preferred stock e none of the above which of the following statements is correct.
A commercial paper b u s. Most commercial papers are easily rolled over by paying for old issuance from the proceed of new issuances. It is issued by large and creditworthy companies to raise short term funds at lower rates of interest than market rates.
Treasury bills banker s acceptances or money market mutual funds. Money markets are markets for a. Commercial paper is a short term unsecured promissory note negotiable and transferable by endorsement and delivery with a fixed maturity period.
Maturities on commercial paper hardly ever range any longer than 270 days. Money market mutual funds. The firm needs 10 million and it offers.
All of the above is not an option. 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. Which of the following is an example of a capital market instrument.
It was initially recommended by vaghul working group on the basis of the following points. Which of the following is an example of a capital market instrument. Which of the following is an example of a capital market instrument.