DEFINITION of 'Two Name Paper'

A nickname assigned to trade paper. Both Trade Acceptances and Bankers Acceptances can be called "two name paper." In order to bear this name, these instruments must carry two signatures.

BREAKING DOWN 'Two Name Paper'

The signatures for two name paper can be either as endorser or drawer. If the issuer of one of these instruments cannot pay the acceptance, then the accepting bank becomes responsible for its payment.

  1. Order Paper

    An order paper is a negotiable instrument that is payable to ...
  2. Paper Dealer

    A market maker that buys and sells extremely short-term corporate ...
  3. Commercial Paper

    Commercial paper is an unsecured debt instrument issued typically ...
  4. Paper Money

    The physical notes or currency of a country that is used as a ...
  5. Acceptance Market

    Investment market based on short-term credit instruments. An ...
  6. Fine Paper

    High-quality securities that are assumed to be risk free, or ...
Related Articles
  1. Investing

    An introduction to commercial paper

    Commercial paper is a short-term instrument that can be a viable alternative for retail fixed-income investors looking for a better rate of return.
  2. Managing Wealth

    Panama Papers Data Dump: Biggest Surprises

    First of all, there aren't 214,000 entities mentioned--there are more than 320,000.
  3. Taxes

    Panama Papers: Searchable Database of All 214,000 Parties Now Live

    Prepare for global mayhem.
  4. Personal Finance

    What personal bankers do – and how much they make

    Discover the job duties and typical salary of a personal banker, and identify the education and skill set needed to be successful in the field.
  5. Investing

    Old Stock Certificates: Lost Treasure or Wallpaper?

    What if you've discovered some old shares in bearer form? Follow our tips to find out what they're worth.
  6. Tech

    Federal Reserve Exploring Blockchain Options

    The Fed finally caved on acknowledging blockchain's future importance.
  7. Tech

    'Dean of Valuation' Believes Cryptocurrencies Are Replacing Gold

    A professor at NYU's Stern School of Business says digital currencies will compete with fiat currencies.
  8. Personal Finance

    Private banker: Job description and average salary

    Discover what a career in private banking entails, including a job description, education and training, necessary skills and licensing, and salary.
  9. Trading

    Top Day Trading Instruments

    Day trading is an intense and often appealing activity. Investopedia provides the list of top financial instruments for day trading.
  1. Can a business ever be too small to issue commercial paper?

    See why market forces regulate the size of companies that issue commercial paper, even though there are no official regulations ... Read Answer >>
  2. Why do long-term care insurers require the loss of two Activities of Daily Living ...

    Find out why an importing or exporting merchant might turn to a banker's acceptance to help facilitate an international trade ... Read Answer >>
  3. What are some examples of money market funds?

    Learn more about different types of money market mutual funds, including those that invest in government paper versus commercial ... Read Answer >>
Hot Definitions
  1. Liquidity

    Liquidity is the degree to which an asset or security can be quickly bought or sold in the market without affecting the asset's ...
  2. Federal Funds Rate

    The federal funds rate is the interest rate at which a depository institution lends funds maintained at the Federal Reserve ...
  3. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  4. Standard Deviation

    A measure of the dispersion of a set of data from its mean, calculated as the square root of the variance. The more spread ...
  5. Entrepreneur

    An entrepreneur is an individual who founds and runs a small business and assumes all the risk and reward of the venture.
  6. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
Trading Center