Commercial Paper | Practical Law

Commercial Paper | Practical Law

Commercial Paper

Commercial Paper

Practical Law Glossary Item 0-382-3349 (Approx. 2 pages)

Glossary

Commercial Paper

Short-term debt obligations that are usually considered a low-risk investment. Commercial paper is typically issued without registration under the Securities Act by US and non-US banks, financial companies and other large, investment grade companies. It may be discounted or interest-bearing.
For an overview of US commercial paper programs, including a description of typical parties involved, documents and exemptions from registration under the Securities Act, see Practice Note, US Commercial Paper Programs: Overview.