commercial paper


: 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,, 15 Apr. 2023 The company is reducing its reliance on short-term commercial paper due to the increase in financing costs. Nina Trentmann,, 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 The Securities and Exchange Commission also could use its powers to demand that certain stablecoin issuers with reserves backed by securities — such as commercial paper, bonds or money market funds — register as securities, which would require companies to provide more disclosures to investors. New York Times, 23 Sep. 2021 The Reserve Primary Fund foundered during the 2008 financial crisis as commercial paper fell hard. Larry Light, Fortune, 13 Apr. 2023 There is some scarcity of commercial paper. Michael R. Wickline, Arkansas Online, 18 Aug. 2021 Multiple options exist for parking cash, such as investing in short-term government securities, money market instruments and corporate commercial paper. Michael Hiltzik, Los Angeles Times, 12 Mar. 2023

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'commercial paper.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1836, in the meaning defined above

Time Traveler
The first known use of commercial paper was in 1836

Dictionary Entries Near commercial paper

Cite this Entry

“Commercial paper.” Dictionary, Merriam-Webster, Accessed 24 Jun. 2024.

Legal Definition

commercial paper

see paper

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