Cage

AAA

DEFINITION of 'Cage'

A term used to describe the department of a brokerage firm that receives and distributes physical securities. The cage, as it is known within the industry, is a secure area within a brokerage firm where all physical securities and certificates are housed and stored for safe keeping for the firm and its clientele.

INVESTOPEDIA EXPLAINS 'Cage'

To ensure that security ownership standards are maintained, brokerages around the world keep cages within their offices to ensure that any and all physical issues are kept securely. Stock and bond certificates are viewed as a stored value of money, and thus if certificates are stolen or lost, individuals can stand to gain from the sale or redemption of these certificates.

RELATED TERMS
  1. Street Name

    When securities are held in the name of a broker or other nominee, ...
  2. Physical Delivery

    Term in an options or futures contract which requires the actual ...
  3. Bond

    A debt investment in which an investor loans money to an entity ...
  4. Security

    A financial instrument that represents: an ownership position ...
  5. Bearer Form

    A security not registered in the issuing corporation's books ...
  6. Broker

    1. An individual or firm that charges a fee or commission for ...
Related Articles
  1. Insurance

    The Causes And Effects Of Credit Shocks

    These shocks cycle through history. Find out what you need to know to avoid the alarm bells.
  2. Credit & Loans

    The Evolution Of Banking

    Banks are a part of ancient history. Find out how this system of money management developed into what we know today.
  3. Personal Finance

    Using Economic Capital To Determine Risk

    Discover how banks and financial institutions use economic capital to enhance risk management.
  4. Investing

    What is the difference between investment banks and merchant banks?

    Merchant banks and investment banks, in their purest forms, are different kinds of financial institutions that perform different services. In practice, the fine lines that separate the functions ...
  5. Options & Futures

    Demystification Of Bank Accounts

    Find out which type of account suits your specific needs.
  6. Professionals

    How to Choose a Robo-advisor? Follow the Money

    Which of the many robo-advisors will still be around in a decade? Here's an informal look at who might thrive and who might simply survive.
  7. Economics

    Which country has the most gold?

    Learn which countries hold the most in gold reserves, and explore the reasons holding gold may be beneficial to a country's economy.
  8. Chart Advisor

    Commodities Are Pulling Chile And Brazil Lower

    Strategic investors should not only keep an eye on charts of falling commodity prices, but they should also watch the impact falling commodities are having on South American nations like Chile ...
  9. Chart Advisor

    As Oil Prices Drop, Traders Look To Lumber

    While much attention is being given to declining energy prices, it may prove strategic for active traders to shift their focus to sectors like lumber that are offering better risk/reward scenarios; ...
  10. Economics

    Canadian Oil Sands: Only Lucrative At The Right Price

    Canadian oil sands projects are economically viable at oil prices above US$84.99/bbls, and they provide many benefits to the Canadian energy industry.

You May Also Like

Hot Definitions
  1. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  2. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  3. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  4. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  5. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
  6. Bank Guarantee

    A guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor ...
Trading Center