Commercial paper

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Commercial paper

Commercial paper is a short-term, unsecured debt issued by large businesses with good credit ratings. Unlike long-term debt issues, commercial paper maturing in 270 days or less doesn't have to be registered with the Securities and Exchange Commission. Businesses use commercial paper to provide short-term liquidity to support regular fluctuations in accounts receivable and inventory. From an investor's perspective, commercial paper is considered relatively low risk.

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