A commercial paper issue where dealers bid competitively for the paper is a/an:
A) tap issuance.
B) tender.
C) offer.
D) proposition.

Question

Quizplus · Accepted Answer

A tender is when potential buyers bid competitively for a commercial paper issue, whereas a tap issuance is when an issuer sells additional securities to an existing investor at a predetermined price. An offer and proposition are other terms for a general sale or proposal, but do not specifically refer to a competitive bid process for commercial paper.

A Commercial Paper Issue Where Dealers Bid Competitively for the Paper