Asked by Nicholas Lalla on May 10, 2024
Verified
The maximum maturity of commercial paper that can be issued without SEC registration is
A) 270 days.
B) 180 days.
C) 90 days.
D) 30 days.
SEC Registration
The process by which securities are registered with the Securities and Exchange Commission, a requirement for securities to be legally sold to the public in the United States.
Commercial Paper
An unsecured, short-term debt instrument issued by a corporation, typically for financing short-term liabilities, with maturities ranging from a few days to 270 days.
- Understand the issuance, maturity, and registration requirements of commercial paper.
Verified Answer
ML
Melanie LopezMay 16, 2024
Final Answer :
A
Explanation :
Commercial paper can be issued for a maximum maturity of 270 days without requiring registration with the Securities and Exchange Commission (SEC). This allows for a relatively quick and cost-effective way for companies to raise short-term funds.
Learning Objectives
- Understand the issuance, maturity, and registration requirements of commercial paper.