What is the term used for a short-term, unsecured debt sold by a large company to investors?

Question

Quizplus · Accepted Answer

Commercial paper is a short-term, unsecured debt instrument issued by large corporations or financial institutions. It is typically used to fund short-term liabilities or finance the purchase of inventory or other short-term assets. Commercial paper is sold to investors at a discount from face value and matures within 270 days. It is considered a relatively low-risk investment, but investors should still exercise caution and research the creditworthiness of the issuer before purchasing.

What Is the Term Used for a Short-Term, Unsecured Debt