Banking And Securities Industry Committee - BASIC

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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.

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RELATED FAQS
  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 >>
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    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 >>
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    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 >>
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