From f36fe03341761bc629278e957597ee9c36801c15 Mon Sep 17 00:00:00 2001 From: kumaravelrajan Date: Mon, 28 Jun 2021 10:33:31 +0200 Subject: [PATCH] [Doc-Update] + What is a commercial paper section Inserted "What is the commercial paper" section. It gives better background for a reader from a non-financial background and makes it easier to understand the project from the start. Signed-off-by: kumaravelrajan Signed-off-by: Ry Jones (cherry picked from commit b03422528ba9fbbe824f2c4f9242f9174385f5c7) --- docs/source/developapps/scenario.md | 11 +++++++++++ 1 file changed, 11 insertions(+) diff --git a/docs/source/developapps/scenario.md b/docs/source/developapps/scenario.md index a338e64b426..176614764f8 100644 --- a/docs/source/developapps/scenario.md +++ b/docs/source/developapps/scenario.md @@ -9,6 +9,17 @@ Fabric, to issue, buy and redeem commercial paper. We're going to use the scenario to outline requirements for the development of commercial paper applications and smart contracts used by the participant organizations. +## What is commercial paper? + +Commercial paper is a commonly used type of unsecured, short-term debt instrument +issued by corporations, typically used for the financing of payroll, accounts +payable and inventories, and meeting other short-term liabilities. Maturities on +commercial paper typically last several days, and rarely range longer than 270 days. +The face value of the commerical paper is the value the issuing corporating would be +paying the redeemer of the paper upon maturity. While buying the paper, the lender +buys it for a price lesser than the face value. The difference between the face value and +the price the lender bought the paper for is the profit made by the lender. + ## PaperNet network PaperNet is a commercial paper network that allows suitably authorized