Short-Term Paper financial definition of Short-Term Paper. Short-Term Paper finance term by the Free Online Dictionary.

Commercial paper

Short-term promissory notes either unsecured or backed by assets such as loans or mortgages issued by a corporation. The maturity of commercial paper is typically less than 270 days; the most common maturity range is 30 to 50 days or less.

Commercial Paper

An unsecured, short-term debt security issued by a corporation. Commercial paper is usually issued at a discount from par, and is a popular investment with mutual funds. It usually is issued in large denominations (over $250,000) and has a maturity of less than 270 days, with most maturing within one or two months of issue. It is a highly liquid investment and forms part of the money market. It is often simply called paper.

commercial paper

A short-term unsecured promissory note issued by a finance company or a relatively large industrial firm. The notes are generally sold at a discount from face value with maturities ranging from 30 to 270 days. Although the large denominations ($25,000 minimum) of these notes usually keep individual investors out of this market, the notes are popular investments for money market mutual funds. Used interchangeably with the term paper. See also prime paper.

Commercial paper. To help meet their immediate needs for cash, banks and corporations sometimes issue unsecured, short-term debt instruments known as commercial paper.

Commercial paper usually matures within a year and is an important part of what's known as the money market.

It can be a good place for investors -- institutional investors in particular -- to put their cash temporarily. That's because these investments are liquid and essentially risk-free, since they are typically issued by profitable, long-established, and highly regarded corporations.

Commercial Paper

What Does Commercial Paper Mean?

An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories, and short-term liabilities. Maturities on commercial paper rarely are longer than 270 days, and commercial paper usually is issued at a discount to prevailing market interest rates.

Investopedia explains Commercial Paper

Generally, commercial paper is not backed by any form of collateral; therefore, only firms with high-quality debt ratings will find buyers easily without having to offer a substantial discount (higher cost) for the debt issue. Commercial paper does not have to be registered with the Securities and Exchange Commission (SEC) as long as it matures before nine months (270 days), making it a very cost-effective means of financing. Monies from this type of financing can be used only on current assets (inventories), not on fixed assets, such as a new plant, without SEC involvement.

Related Terms:
• Cash and Cash Equivalents
• Banker's Acceptance—BA
• Interest Rate
• Certificate of Deposit—CD
• Money Market

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A.G. Becker Paribas Asset-Backed Commercial Paper Backup Line Backup Line of Credit Bank Secrecy Act Bankers Acceptance Carta commerciale Commercial paper de maxima calidad Commercial Paper Funding Facility Dealer Paper Debt Securities Direct Paper Documented Discount Notes Euro-Commercial Paper Exempt Securities long-term debt Money Market Money Market Fund Moody's Bond Survey	Consumers, too, are showing strong preference for short-term paper when they are looking for places to park cash, said Colby, who indicated credit unions will see lower demand for longer-term certificates of deposit and greater demand for highly liquid instruments such as money market accounts. Corporate's December report inflates inflation worries by McGarvey, Robert / Credit Union Times lt;p>According to the Economist Intelligence Unit, the Saudi fixed-income security market consists of short-term paper issued by the Treasury (Treasury bills), with a maturity of up to one year, and bonds issued by the government through SAMA, which range in maturity from two to 10 years. Trading lightly on the Tadawul by Banker Middle East [GRAPHIC OMITTED] [GRAPHIC OMITTED] The issuance of very short-term paper dropped dramatically with the new source of longer-term funding and stayed low as the longer-term issues held began to roll over in late January. The impact of credit easing so far by Carlson, John; Wakefield, Sarah / Economic Trends	Short Tender Short the Basis Short-Form Registration Short-Interest Ratio Short-run operating activities Short-Sale Rule Short-Short Test Short-Term Short-Term Bond Fund Short-Term Capital Gain short-term capital gain or loss Short-Term Capital Loss short-term debt Short-Term Discount Note Short-Term Discount Notes Short-Term Financial Plan Short-Term Gain Short-Term Gain or Loss Short-Term Interest Rate Short-Term Interest Rates Short-Term Investment Fund Short-term investment services Short-Term Loan Short-Term Moving Average Short-Term Municipal Bond Fund Short-Term Paper Short-Term Reserves Short-term solvency ratios Short-Term Tax Exempts Short-Term Trading Index Short-Term Trend Shortage cost Shortfall Shortfall Risk Shotgun Approach Shotgun Clause Shoukan Kigen Shoukokin should Shoumi Genzai Kachi Shout Option Show and tell list Show me buyer/seller Show Stopper show-cause order Show-Through Show-Up Time Shoyuu Kikan Rimawari SHP Shrapnel Shrinkage	Short-Term Liability Short-Term Liability Short-Term Liquid Marrow Culture Short-Term Liquidity Short-Term Loan Short-Term Loan Short-Term Loans Short-Term Loss Short-Term Losses short-term memory short-term memory short-term memory short-term memory Short-Term Memory Capacity Short-Term Memory Disease Short-Term Memory to Tones Short-Term Missions Team Short-Term Money Market Short-Term Motor Memory Short-Term Moving Average Short-Term Moving Averages short-term municipal bond fund Short-Term Municipal Bond Funds Short-Term Myocardial Hibernation Short-Term Obligation Short-Term Obligation Short-Term Obligations Short-Term Obligations Short-Term Observers Short-Term Output Indicators Review Short-Term Paper Short-Term Plan Short-Term Power Control Short-Term Power Output Short-Term Prediction Research and Transition Center short-term predictor Short-Term Program Short-Term Public Emergency Guidance Level Short-Term QoS Deficit Round Robin Short-Term Random Variance Short-Term Recall Short-Term Redemption Fee Short-Term Rent, Mortgage and Utility short-term repeatability Short-Term Reserve Short-term reserves Short-Term Revolving Credit Short-Term Roadwatch and Target Acquisition Short-Term Selected Line Short-term solvency ratios Short-Term Storage Space Short-Term Systematic Variance Short-Term Tax Exempt Short-term tax exempts Short-Term Temporarily Deferred

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References in periodicals archive

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A.G. Becker Paribas
Asset-Backed Commercial Paper
Backup Line
Backup Line of Credit
Bank Secrecy Act
Bankers Acceptance
Carta commerciale
Commercial paper de maxima calidad
Commercial Paper Funding Facility
Dealer Paper
Debt Securities
Direct Paper
Documented Discount Notes
Euro-Commercial Paper
Exempt Securities
long-term debt
Money Market
Money Market Fund
Moody's Bond Survey

Consumers, too, are showing strong preference for short-term paper when they are looking for places to park cash, said Colby, who indicated credit unions will see lower demand for longer-term certificates of deposit and greater demand for highly liquid instruments such as money market accounts.

Corporate's December report inflates inflation worries by McGarvey, Robert / Credit Union Times

lt;p>According to the Economist Intelligence Unit, the Saudi fixed-income security market consists of short-term paper issued by the Treasury (Treasury bills), with a maturity of up to one year, and bonds issued by the government through SAMA, which range in maturity from two to 10 years.

Trading lightly on the Tadawul by Banker Middle East

[GRAPHIC OMITTED] [GRAPHIC OMITTED] The issuance of very short-term paper dropped dramatically with the new source of longer-term funding and stayed low as the longer-term issues held began to roll over in late January.

The impact of credit easing so far by Carlson, John; Wakefield, Sarah / Economic Trends

Short Tender

Short the Basis

Short-Form Registration

Short-Interest Ratio

Short-run operating activities

Short-Term Capital Gain

short-term capital gain or loss