Who can buy commercial paper?
Similarly, you may ask, who can invest in commercial paper?
Individuals, banking companies, other corporate bodies (registered or incorporated in India) and unincorporated bodies, Non-Resident Indians (NRIs) and Foreign Institutional Investors (FIIs) etc. can invest in CPs.
Additionally, can commercial paper be traded? Commercial paper is usually traded among large institutions, but individual investors can participate in two ways: Individuals can buy commercial paper from a broker. However, since commercial paper is typically traded in increments of $100,000 or more, it takes a substantial investment.
Correspondingly, what is an example of commercial paper?
Commercial paper is a money-market security issued (sold) by large corporations to obtain funds to meet short-term debt obligations (for example, payroll) and is backed only by an issuing bank or company promise to pay the face amount on the maturity date specified on the note.
Which companies can issue commercial papers?
Commercial paper is an unsecured form of promissory note that pays a fixed rate of interest. It is typically issued by large banks or corporations to cover short-term receivables and meet short-term financial obligations, such as funding for a new project.