Cage

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.

BREAKING DOWN '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.

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RELATED FAQS
  1. What protects an investor’s interest in the case of terrorist sabotage, or act of ...

    Currently, most stock ownership is done electronically thru the combined effort of the brokerage firms and the transfer agents ... Read Answer >>
  2. 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 Answer >>
  3. I lost my share certificate. Do I still own the stock?

    Regardless of whether a shareholder loses his or her stock certificate, that person still owns the shares. However, in order ... Read Answer >>
  4. 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 Answer >>
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    Short selling can be very risky for both the investor and the broker. Brokers will often tell investors that only stocks ... Read Answer >>
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