Tuesday, July 17th 2018

Question

Who issues commercial paper?

Interesting Question?   (4)   (8)



Answers (1)

17th Nov 2009 by Joseph Pousada

Commercial paper is debit issued with a maturity less than nine months by various institutions and agencies. Many corporate institutions will issue commercial paper and issue the shares through broker / dealers or sell them directly to money managers at money market mutual fund companies. Governmental agencies will also sell commercial paper in the form of RANs (Revenue Anticipatory Notes) and TANs (Tax Anticipatory Notes). In the United States there was a Supreme Court ruling that disallowed different levels of government from taxing each other. As a result municipal securities are exempt from federal income tax in the US and some municipalities have made their bonds exempt from state and local income tax as well to attract investors. Before investing directly in commercial paper it is important to review the specific investment with your financial advisor. In addition, it is especially important to review the investment with your tax advisor for those pursuing tax exempt strategies.

Reference:
http://www.sec.gov/about/laws/sa33.pdf
http://en.wikipedia.org/wiki/Commercial_paper


Like This Answer?   (0)   (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com



1st Nov 2009 In Money Market 1 Answers | 800 Views

Answer This Question / Give Your Opinion
Who issues commercial paper?


Answer: *

What country is this answer relevent to? *
Your Name: *

Enter Verification Number: *


Give Your Opinion
What is a treasury swap?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
What is a treasury swap?
Unanswered Questions in Money Market
How to issue commercial paper?
How to open a open money market account
What is a money market deposit account?
How to invest in commercial paper?
What are the advantages of a open money market account?

Answered Questions in Money Market
Who buys commercial paper?
What is the commercial paper market?
What are money market securities?
Who issues commercial paper?
Ask A Question
Get opinions on what you want to know:
Specific to any country?