The Commercial Paper Market and the Securities Acts

Kenneth V. Handal
1972 The University of Chicago Law Review  
Although commercial paper currently provides both a major source of financing for a diverse group of issuers and a significant investment instrument for an increasingly widespread portion of the public, it has been traditionally excluded from the full coverage of the federal securities acts. Developments in commercial paper over the last forty years have given rise to a market strikingly different from that which existed at the time these securities regulations were drafted. 1 Prompted by a
more » ... nt swift expansion in the volume and uses of commercial paper, along with the exposure of serious weaknesses in the commercial paper market, 2 this comment undertakes a reappraisal of the relationship between commercial paper and the regulatory pattern of the securities acts. The first section of this comment will examine the scope and opera-1 For historical accounts of the commercial paper market, see N. BAXTER, THE Com-mERCIAL PAPER M AxRK (2d ed. 1966); R.
doi:10.2307/1599007 fatcat:imp7qsg76bfcbarolqdzhifuc4