The Commercial Paper (CP) is a short-term unsecured instrument issued in the form of a Promissory note. These are transferable by endorsement and delivery with a fixed maturity period. These can be issued for a maturity period of 15 days to one year.
Commercial Papers are issued by large and credit worthy companies to raise short-term funds for working capital requirements.These are actively traded in secondary markets, can also be sold at discount.
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