commercial paper



Promissory note (issued by financial institutions or large firms) with very-short to short maturity period (usually, 2 to 30 days, and not more than 270 days), and secured only by the reputation of the issuer. Rated, bought, sold, and traded like other negotiable instruments, commercial paper is a popular means of raising cash, and is offered generally at a discount instead of on interest bearing basis. Also called paper. See also government paper.

Use commercial paper in a sentence

  • If you want to pay for something but don't like using cash commercial paper can be a good option if the buyer is ok with it.

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  • We decided to buy an extremely large amount of commercial paper to best set up our business for continued success.

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  • Many corporations use commercial paper as a form of currency indicating the transference of a specified sum of money at a specified time.

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