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Trading Paper

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Trading paper
CDs purchased by accounts that are likely to resell them. The term is commonly used in the Euromarket.

Trading Paper
The act or practice of buying or selling a certificate of deposit. Trading paper especially refers to situations in which the buyer is likely to re-sell the CD. The term is most common on the Euromarket.


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In the Reagan 1980s, a small public company could raise $1 million right away under Rule 504, exempt from registration, and the investor could turn around and take the free trading paper and get liquidity immediately and then either take his profit or go into another deal.
 
 
 
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