Commercial Paper
Short-term unsecured debt instrument issued by corporations for working capital.
Detailed Description
Commercial Paper
What is the primary purpose of commercial paper?
The primary purpose of commercial paper is to provide corporations with a flexible and cost-effective financing option to meet short-term funding requirements.
What are the two main types of commercial paper?
The two main types of commercial paper are direct paper and dealer paper.
What is the typical maturity period for commercial paper?
The typical maturity period for commercial paper ranges from a few days up to 270 days, with most notes maturing within 30 to 90 days.
Who are the primary investors in commercial paper?
The primary investors in commercial paper are usually institutional entities, such as money market funds, banks, insurance companies, and pension funds.
What regulatory body oversees commercial paper in the United States?
The Securities and Exchange Commission (SEC) regulates commercial paper under the Securities Act of 1933.