[This is part of the series: The Complete Guide To Economics 101.]

What is disintermediation?

Disintermediation is the ability to circumvent a given intermediary.

Or, said better: Cutting out the middleman.

The best example of this that I can think of is the internet.

For how long did someone have to convince a gatekeeper at CNN or Fox or CBS or NBC to give them a chance at a TV or radio show.

The internet killed all of that.

And today, neophytes with a YouTube channel and/or podcast have larger audiences than the networks can dream about.

[This is part of the series: The Complete Guide To Economics 101.]

What is commercial paper?

Commercial Paper is a type of short-term debt instrument that is issued by a corporation in order to finance a short-term liability.

For example, a large firm might sell a $50 million IOU – with $50.5 million due in 250 days.

There is no credit rating because these debts are only backed by the issuing firm.

Commercial paper is a money market type of financial asset.