What is a paper company?

A company with no operations that exists exclusively for a financial reason. For example, a paper company may issue a bond to fund its parent company so the parent company does not have the liability directly. A paper company has few or no assets other than those of a financial nature. See also: Back door listing.

What is an example of a paper company?

For example, a paper company may issue a bond to fund its parent company so the parent company does not have the liability directly. A paper company has few or no assets other than those of a financial nature. See also: Back door listing. Farlex Financial Dictionary. © 2012 Farlex, Inc.

Is commercial paper a good investment?

In the commercial paper market, the company issuing the debt is usually perceived to be low risk. Still, ratings agencies such as Moody’s and Fitch issue credit ratings on the commercial paper to be sold as a measure of potential investment for prospective buyers.