Banking And Securities Industry Committee - BASIC


DEFINITION of 'Banking And Securities Industry Committee - BASIC'

A committee established in 1970 to standardize, automate and streamline stock certificate and options processing. The Banking and Securities Industry Committee (BASIC) sought to uphold uniform rules and regulations regarding the trading and settlement of securities.

BREAKING DOWN 'Banking And Securities Industry Committee - BASIC'

The National Association of Securities Dealers, the New York Clearing House banks and major stock exchanges collaborated to form BASIC to resolve the paperwork crisis in the securities industry resulting from the bull market of the late 1960s.

Essentially, BASIC attempted to reduce the physical exchange of stock certificates when transferring ownership. Its efforts culminated in the creation of the Depository Trust Company.

  1. Shareholder

    Any person, company or other institution that owns at least one ...
  2. Stock

    A type of security that signifies ownership in a corporation ...
  3. Stock Certificate

    The physical piece of paper representing ownership in a company. ...
  4. Transfer

    A change in ownership of an asset, or a movement of funds and/or ...
  5. Custody-Only Trading

    A system in which shares must be registered to the holder by ...
  6. Insider Trading

    The buying or selling of a security by someone who has access ...
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  1. How do you get a hard copy of a stock certificate?

    Before online brokers and personally-directed accounts, holding a physical stock certificate was a necessity, as this was ... Read Full Answer >>
  2. What does "in street name" mean, and why are securities held this way?

    In almost every instance when you buy or sell securities with a broker, your name is not actually on the stock or bond certificate. ... Read Full Answer >>
  3. How does the ISIN numbering system work?

    The International Securities Identification Numbering (ISIN) system is an international standard set up by the International ... Read Full Answer >>
  4. I hold stock certificates in a company that just had a stock split. What happens ...

    The short answer is that a stock split will have little effect on the holder of stock certificates. In most cases when an ... Read Full Answer >>
  5. Are UTMA accounts escheatable?

    Like most financial assets held by institutions such as banks and investment firms, UTMA accounts can be escheated by state ... Read Full Answer >>
  6. Can the IRS audit you after a refund?

    The U.S. Internal Revenue Service (IRS) can audit tax returns even after it has issued a tax refund to a taxpayer. According ... Read Full Answer >>

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