What is the difference between direct paper and dealerpaper? (Select all of the choices below that apply.)

A. Direct paper is a method by which a firm sells its commercial paper directly to investors.

B. Dealer paper refers to the sale of commercial paper through dealers.

C. The dealers get a fee for their services, thus reducing the proceeds that the issuing firm receives (and increasing the effective cost to the firm).

D. Dealer paper is named as such when a firm is acting as the dealer by issuing commercial paper directly to investors.

E. Direct paper allows a firm to save issuing costs by selling its commercial paper directly to dealers.

Answer rating: 100% (QA)

B Dealer paper refers to the sale of commercial paper through dealers ... View the full answer