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commercial paper
noun
: short-term unsecured discounted paper usually sold by one company to another for immediate cash needs
Examples of commercial paper in a Sentence
Recent Examples on the Web
That makes sense because commercial paper, while hardly far out on the risk curve, lacks the assurance that Treasury bonds boast.
—Larry Light, Fortune, 13 Apr. 2023
On two days in mid-March, less than $2 billion of commercial paper with maturities longer than 80 days was issued, according to Federal Reserve data on the short-term IOUs issued by companies to fund their operations.
—Eric Wallerstein, wsj.com, 15 Apr. 2023
The company is reducing its reliance on short-term commercial paper due to the increase in financing costs.
—Nina Trentmann, Bloomberg.com, 4 May 2023
Large enterprises regularly issue commercial paper: short-term notes that generally have a life of 30 to 90 days, which the companies expect to renew at maturity.
—Justin Muzinich, WSJ, 1 Mar. 2023
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Word History
First Known Use
1836, in the meaning defined above
Dictionary Entries Near commercial paper
Cite this Entry
“Commercial paper.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/commercial%20paper. Accessed 8 Nov. 2024.
Legal Definition
commercial paper
see paper
More from Merriam-Webster on commercial paper
Britannica.com: Encyclopedia article about commercial paper
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