Commercial paper - Definition and Overview

Commercial paper is a short-term unsecured debt trading as a security issued by large banks and corporations. It is generally used not to finance major projects but rather is used for purchases of inventory or to manage short term cash flow. It is commonly bought by Money Market funds (the issuing amounts are often too high for individual investors), and is generally regarded as a very safe investment. As a relatively low risk option returns are not large.

Example Usage of Commercial