What Is Commercial Paper? Commercial paper is an unsecured, short-term debt instrument issued by corporations. It’s typically used to finance short-term liabilities such as payroll, accounts payable, and inventories. Commercial paper is usually issued at a discount from face value. It reflects prevailing market interest rates. Commercial paper involves a specific amount of money that
What Is Commercial Policy? “Commercial policy” is an umbrella term that describes the regulations and policies that dictate how companies and individuals in one country conduct commerce with companies and individuals in another country. Commercial policy is sometimes referred to as “trade policy” or “international trade policy.” Key Takeaways “Commercial policy” is an umbrella term
Commercial property is real estate that is used for business activities. Commercial property usually refers to buildings that house businesses, but can also refer to land used to generate a profit, as well as large residential rental properties. The designation of a property as a commercial property has implications for how it is financed, how it
What Is Commercial Property Insurance? Commercial property insurance is used to cover any commercial property. Commercial property insurance protects commercial property from such perils as fire, theft, and natural disaster. A variety of businesses, including manufacturers, retailers, service-oriented businesses, and not-for-profit organizations carry commercial property insurance. It is generally bundled together with other forms of insurance, such
What Is a Commercial Property Floater? A commercial property floater is a rider that is attached to a commercial insurance policy to protect property that a company doesn’t store at a fixed location. For example, a construction company may want to guard equipment it owns that it uses at various sites. Companies may pay an additional premium to
What Is Commercial Real Estate (CRE)? Commercial real estate (CRE) is property used exclusively for business-related purposes or to provide a work space rather than a living space, which would instead constitute residential real estate. Most often, commercial real estate is leased to tenants to conduct income-generating activities. This broad category of real estate can include
What Is a Commercial Real Estate (CRE) Loan? A commercial real estate loan is a mortgage secured by a lien on commercial property as opposed to residential property. Commercial real estate (CRE) refers to any income-producing real estate that is used for business purposes; for example, offices, retail, hotels, and apartments. Key Takeaways A CRE
What is Commercial Well A commercial well is any oil or gas drilling site that produces enough oil or gas to be commercially viable. All wells that investors are willing to put money into are considered to be commercial wells. Sites with non-producing wells fall outside this category, as do sites with only one or
What Is a Commercial Year? A commercial year is a 360-day period composed of 12 months of 30 days that is used by some businesses and non-profit organizations to internally track changes in accounts. Differences in the number of days in each calendar month are adjusted so that comparisons for sales, expenses, etc. are easier
What Is a Commingled Trust Fund? A commingled trust fund combines assets under a joint investment management strategy. Commingled trust funds represent a pool of assets that are jointly-managed by the same entity. These funds can be from several sources, such as trusts and retirement plans. Understanding a Commingled Trust Fund Commingled trust funds, regulated
