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Paper

• Money market instruments, commercial paper and other.

• Money market instruments, commercial paper, and other.

 
 Embedded terms in definition
 Commercial paper
Commercial
Instruments
Market
Money market
 
 Referenced Terms
 Banker's acceptance: Are money market instruments which are used to finance import or export transactions. These instruments are essentially checks and represents a bank's promise and ability to pay the face or principal amount on the stipulated maturity date. Maturities are generally less than 3months. Bankers Acceptances are viewed as money market instruments.A money market instrument created to facilitate international trade transactions. This instrument is highly liquid and safe because the risk of the trade transaction is transferred to the bank that "accepts" the obligation to pay the investor.BA
A draft or bill of exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill. When the merchant presents a letter of credit to their bank, the bank discounts it and stamps ACCEPTED on it. Hence, a letter of credit then becomes a banker's acceptance. The banker's acceptances can be sold in the secondary market to money market mutual funds.Short-term, low-risk marketable securities arising from bank guarantees of business transactions; are sold by banks at a discount from their maturity value and provide yields slightly below those on negotiable CDs and commercial Paper, but higher than those on Government of Canada treasury bills.A short-term credit investment created by a non-financial firm and guaranteed by a bank as to payment. Acceptances are traded at discounts from face value in the secondary market. These instruments have been a popular investment for money market funds. They are commonly used in international transactions.

 Bond equivalent yield: Is the procedure which relates discounted rates such as treasury bills and eurodollars to a bond standard. It is typical for discounted Paper to be computed on the basis of a 360-day year whereas bonds are usually based on a 365 day year. If this equivalency is not done then the quoted short-term rates for discounted instruments may be understated.The annualized yield to maturity computed by doubling the semiannual yield.Bond yield calculated on an annual percentage rate method. Differs from annual effective yield.

 Book entry securities: The Treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of Paper but are maintained in computerized records at the Fed in the names of member banks, which, in turn, keep records of the securities they own as well as those they are holding for customers. In the case of other securities for which there is a book- entry system, engraved securities do exist somewhere in quite a few cases. These securities do not move from holder to holder but are usually kept in a central clearinghouse or by another agent.The Treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of Paper but are maintained in computerized records at the Fed in the names of member banks, which in turn keep records of the securities they own as well as those they are holding for customers. In the case of other securities where a book-entry has developed, engraved securities do exist somewhere in quite a few cases. These securities do not move from holder to holder but are usually kept in a central clearinghouse or by another agent.

 Book entry securities: The Treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of Paper but are maintained in computerized records at the Fed in the names of member banks, which, in turn, keep records of the securities they own as well as those they are holding for customers. In the case of other securities for which there is a book- entry system, engraved securities do exist somewhere in quite a few cases. These securities do not move from holder to holder but are usually kept in a central clearinghouse or by another agent.The Treasury and federal agencies are moving to a book-entry system in which securities are not represented by engraved pieces of Paper but are maintained in computerized records at the Fed in the names of member banks, which in turn keep records of the securities they own as well as those they are holding for customers. In the case of other securities where a book-entry has developed, engraved securities do exist somewhere in quite a few cases. These securities do not move from holder to holder but are usually kept in a central clearinghouse or by another agent.

 Cash equivalent security: Is a term which has several meanings. It often refers to high grade instruments which are very liquid and have very little time to maturity. Among these are treasury bills, commercial Paper, and bankers' acceptances. In a somewhat broader sense it can include money market shares and short-term municipal paper.

 
 Related Terms
 Commercial paper
Direct paper
Discount paper
Euro commercial paper
Finance company paper
Paper gain loss
Paper loss
Paper profit
Trading paper

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