Commercial Paper is a short-term, unsecured debt instrument issued by corporations to raise funds for immediate needs, such as inventory purchases or operating expenses. Typically, it has a maturity period ranging from a few days to up to 270 days and is sold at a discount to its face value. Investors in Commercial Paper are usually institutional entities, such as banks or mutual funds, seeking low-risk, short-term investment options. Because it is unsecured, only companies with high credit ratings can issue Commercial Paper, making it a reliable option for those looking to invest in corporate debt.