Learning Goals
There are 2 methods of issuing paper. The issuer can directly market the securities to a purchase and hold investor such because so many cash market funds. Alternatively, it may offer the paper to a dealer, whom then offers the paper on the market. Commercial paper is a lesser cost option to a pne of credit having a bank. As soon as a company becomes estabpshed, and builds a credit that is high, it’s cheaper to draw for a commercial paper than on a bank pne of credit. Continue reading