Hello tottenham:
I'm not sure how brief you want me to be, but I was able to find the
following excellent descriptions of these two investment vehicles.
European Commercial Papers:
URL: http://w4.siemens.de/en2/html/press/press_release_archive/releases/2001030802e.html
Quotes:
"Commercial Paper (CP) refer to global bearer debentures with
maturities ranging from seven days to two years (in practice 30–90
days). CP are not listed on the stock market. The minimum volume is
EUR 0.5 million. CP is a standardised short term money market
instrument which has grown significantly over the past decade."
"Standard & Poors now rates 47 European commercial papers which
reached a total volume of EUR 90 billion at the end of 2000."
So, a ECP is simply a CP that is issued in Europe.
Certificates of Deposit:
URL: http://www.toerien.com/neg_financial_instruments/large_cd.htm
Quotes:
"A certificate of deposit is a document evidencing a time deposit
placed with a depository institution. The certificate states the
amount of the deposit, the date on which it matures, the interest rate
and the method under which the interest is calculated."
"A CD can be legally negotiable or nonnegotiable, depending on certain
legal specifications of the CD. Negotiable CDs can be sold by
depositors to other
parties who can in turn resell them. Nonnegotiable CDs generally must
be held by the depositor until maturity."
"Interest rates on CDs are generally quoted on an interest-bearing
basis with the interest computed on the basis of a 360-day year."
There is a lot of other valuable information on CDs at the given URL.
I hope this information is of help to you.
If you need any clarification of the information I have provided,
please ask using the Clarification feature and provide me with
additional details as to what you are looking for. As well, please
allow me to provide you with clarification(s) *before* you rate this
answer.
Thank you.
websearcher-ga
Search Strategy (on Google):
"certificate of deposits"
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&safe=off&q=%22certificate+of+deposits%22
"european commercial papers"
://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&safe=off&q=%22european+commercial+papers%22+ |
