What is the paper dealer?

paper dealer has nothing to do with paper products used for printing, writing or reading. Instead, this person deals with commercial bills known as commercial paper. The dealer buys and sells them to the buyer and acts as an intermediary for this type of investment.

commercial paper shares many similarities with shares and bonds issued by companies. These are short -term securities sold by banks and corporations to make money quickly. These notes have a maturity length of one to 270 days and contain the date and amount of repayment in the note. These notes are associated with a large amount of risk, as the original issuers do not support these notes. Instead, the buyer assumes that the money will be strictly reimbursed to a credit history issuing organization.

commercial paper has been traded since the 18th century and continues to be a popular way to get money quickly. More than 1,500 companies have issued these bills in 2009. Popularity does not mean that they areAt the Nezrisiková, as paper dealers learned in 1970, when Penn Central did not fulfill more than $ 77 million USD (USD), so investors remained without repayment.

Paper merchant works similarly to shares trader, but focuses attention on these commercial papers. Paper dealer often works for a brokerage company because the company has capital to buy a large number of papers and has capital to risk them. The aim of the paper dealer is to buy these commercial papers and sell them to the buyer at a higher price. In general, thousands of articles must be sold to change significant profits, so retailers have to handle large quantities.

Paper merchant is used as a last option for many issuing organizations because of fees sellers. Merchants charge different percentage points based on what the InstitutPro that work but generally requires 0.05 percent of the selling priceLike a commission. This small percentage - one 20 percent - contributes to a considerable number when hundreds of thousands of commercial papers are sold. The institution will represent its own paper dealers' department many times, cutting a step in the process and saving its pre -pay commission.

IN OTHER LANGUAGES

Was this article helpful? Thanks for the feedback Thanks for the feedback

How can we help? How can we help?