Commercial paper

An unsecured Obligation issued by a corporation or bank to Finance its short-term Credit needs, such as Accounts receivable and inventory. Maturities typically Range from 2 to 270 days. Commercial paper is available in a wide Range of Denomination, can be either discounted or Interest-bearing, and usually have a limited or nonexistent secondary Market. Commercial paper is usually issued by companies with high Credit ratings, meaning that the investment is almost always relatively Low risk.