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Financial Terms

Commercial Paper: What is Commercial Paper?

 Commercial Paper. What is Commercial Paper? What is Commercial Paper? An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities. Maturities on commercial paper rarely range any longer than 270 days. The debt is usually issued at a discount, reflecting prevailing market interest rates. […] Continue reading →

Treasury Bill (T-Bill): What is T-Bill?

 Treasury Bill (T-Bill): What is T-Bill? Treasury bills or T-bills, which are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 day, 182 day and 364 day. Treasury bills are zero coupon securities and pay no interest. T-bills are issued through […] Continue reading →

Government Security: What is Government Security?

 Government Security. Government securities – What is Government Security? A Government security is a tradable instrument issued by the Central Government or the State Governments. It acknowledges the Government’s debt obligation. Such securities are short term (usually called treasury bills, with original maturities of less than one year) or long term (usually called Government bonds […] Continue reading →