Commercial Paper is a short-term debt instrument issued by businesses to finance their operations. It is unsecured, meaning that the issuer does not have to put up any collateral to back it up. This makes commercial paper a relatively low-risk investment for investors.Businesses use commercial paper for a variety of reasons. For one, it's an easy way to finance payroll and other short-term liabilities. Commercial paper also has a lower interest rate than most other types of debt, making it an attractive option for businesses looking to borrow money cheaply.Finally, because commercial paper is such a liquid investment, it's easy for investors to sell if they need access to their money quickly. This makes commercial paper an ideal investment for people who want liquidity but don't want the risk associated with stocks or mutual funds.