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. Security

    A financial instrument that represents: an ownership position ...
  4. Bond

    A debt investment in which an investor loans money to an entity ...
  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 FAQS
  1. 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 ... Read Full Answer >>
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. Options & Futures

    Demystification Of Bank Accounts

    Find out which type of account suits your specific needs.
  5. Economics

    Iron Ore Market: Falling Into The Hands Of A Few

    The big iron ore mining companies have embarked on a drive to increase supply, reduce cost, and take market share.
  6. Chart Advisor

    Commodity Traders Are Using Momentum To Profit From These Stocks

    Active traders are drawn to momentum strategies. These momentum winners of 2015 are worth a trader's second look.
  7. Economics

    This Is A Small Country With Huge Potential to Grow

    Trinidad and Tobago's increased revenue and economic success have been primarily generated by its energy sector, but it still might be best to diversify.
  8. Brokers

    How Brokerage Fees Work

    What you need to know about fees when choosing between a full service and discount broker.
  9. Investing

    What is Asset Management?

    In the investment world, asset management refers to active management of an investor’s portfolio by a financial services company – usually an investment bank.
  10. Brokers

    OptionsXpress Vs. OptionsHouse: Which One To Pick?

    OptionsXpress and OptionsBroker -- each offers a price mix and set of services suitable for certain investors based on their trade approach and priorities.

You May Also Like

Hot Definitions
  1. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  2. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  3. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  4. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  5. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  6. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
Trading Center