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1. Presented To:__________
Presented By: _________
Student No.:________

2. Commercial paper consists of short-term, unsecured
promissory notes issued by well- known and
financially strong companies. Commercial paper is
rated prime, desirable, or satisfactory, depending on
the credit standing of the issuing company.

3. Commercial paper is an unsecured and discounted
promissory note issued to finance the short-
term credit needs of large institutional buyers. Banks,
corporations and foreign governments commonly use
this type of funding.

4.  Money market instrument
 Certificate evidencing
 Issued at discount
 Directly issued

5. There are two major types of commercial paper.
• Direct paper is issued mainly by large finance
companies and bank holding companies directly to
the investor.
• Dealer paper, or industrial paper, is issued by
security dealers on behalf of their corporate
customers (mainly nonfinancial companies and
smaller financial companies).

6.  Simplicity
 Flexibility
 High returns
 Movement of funds

7.  Blue chip and profitable companies
 Credit available from the banks may get reduced
 Regulated by the RBI guidelines