Commercial paper consists of short-term notes sold directly to investors by large and financially sound companies.

Question

Quizplus · Accepted Answer

Commercial paper is a short-term debt instrument issued by large corporations and sold directly to investors, usually with a maturity of less than 270 days. The companies issuing commercial paper are typically financially sound and have a higher credit rating, which makes them a lower-risk investment for investors.

Commercial Paper Consists of Short-Term Notes Sold Directly to Investors