What is a commercial paper?

QuestionsWhat is a commercial paper?
Nikhil Rawat asked 1 year ago
3 Answers
Priya Vishwas answered 1 year ago
Commercial paper is a debt instrument typically issued by a company to raise funds and to meet short-term debt needs. It is usually issued in large denominations, has a fixed maturity date, and is not reissued. Commercial paper is often used for short-term investments and for meeting working capital needs. It can be also used as a means of collateral in secured bank loans or as an investment tool when it can be sold on the open market or repurchased by the issuing company at par value.  
Akshaj Singh answered 1 year ago
Commercial paper is a type of paper that is issued by a company or organization to raise capital for its business. It can be used as collateral for a loan. Commercial paper is also known as banker’s acceptance, commercial bills, and trade acceptances.  
Deepak Goyal answered 1 year ago
The commercial paper is a promissory note, which is issued by a company. The company promises to pay back the debt in the future with interest. The commercial paper is also known as a bank loan, which is typically used when companies need cash but don’t want to borrow from banks or other lenders. Commercial paper can be issued for short-term needs like working capital, inventory financing, and equipment financing.