CUSIP Number

What is the 'CUSIP Number'

The CUSIP number is a unique identification number assigned to all stocks and registered bonds in the U.S. and Canada, and it is used to create a concrete distinction between securities that are traded on public markets. The Committee on Uniform Securities Identification Procedures (CUSIP) oversees the entire CUSIP system. Foreign securities have a similar number called the CINS number.

BREAKING DOWN 'CUSIP Number'

While assigned stock symbols are also unique, a CUSIP number is better suited to use by most computerized systems of trading and record keeping.

The CUSIP System

The CUSIP system is owned by the American Bankers Association in conjunction with Standard & Poor’s. The system is in place to facilitate the settlement process and the clearance of associated securities.

The CUSIP is composed of nine characters, can be composed of letters and numbers, and is assigned to any and all stocks, as well as registered bonds, that are sold or traded within the United States and Canada. The first six characters represent the original issuer of the associated security while the seventh and eighth characters denote the type of issue, and the ninth digit serves as a check digit and ensures a unique final identifier.

These numbers are used to help facilitate trades and settlements by providing a constant identifier to help distinguish the securities within a trade. Each trade and the corresponding CUSIP number is recorded, helping to track the actions and activities that have taken place.

Locating a CUSIP Number

CUSIP numbers are publicly available, and can be accessed through the Municipal Securities Rulemaking Board (MSRB) via the Electronic Municipal Market Access (EMMA) system. Additionally, the information is often listed on official statements relating to the security, such as on confirmations of purchase or periodic financial statements, or can be accessed through various securities dealers.

ISIN Numbers

Expanding beyond the CUSIP system is the International Securities Identification Number (ISIN) system. ISINs are used internationally, with most U.S. and Canadian securities being labeled with an additional two character prefix and one final check character attached at the end of the originally issued CUSIP.

Additionally, information regarding the currency of the specified security is also required to facilitate proper processing and recording. This has helped establish an international system for the clearance of securities. While it is not yet used world-wide, the ISIN system has gained traction across foreign markets as a way to simplify trading processes, especially when dealing with international investing.

RELATED TERMS
  1. Dummy CUSIP Number

    A temporary identification number attached to a security by a ...
  2. CINS Number

    An extension to the CUSIP numbering system, which is used to ...
  3. International Securities Identification ...

    A code that uniquely identifies a specific securities issue. ...
  4. Valoren Number

    An identification number assigned to financial instruments in ...
  5. Stock Exchange Daily Official List ...

    A unique identification code, consisting of seven alphanumeric ...
  6. Employer Identification Number ...

    A unique identification number that is assigned to a business ...
Related Articles
  1. Investing

    Inside National Payment Systems

    Investopedia explains: The global interconnection of U.S. payment systems makes commerical and financial transfers possible.
  2. Investing

    Old Stock Certificates: Lost Treasure?

    Today, most stocks reside electronically in a broker’s computer. But it is possible to stumble across a physical stock certificate.
  3. Managing Wealth

    Microsoft Excel Features For The Financially Literate

    Here are some of Excel's functions and features that a financial professional can use to make his or her job more efficient.
  4. ETFs & Mutual Funds

    Subaccounts: As Good Their Clone Funds?

    Variable annuity subaccounts are virtual clones of mutual funds but they have their own CUSIP number and their historical performances are tracked separately.
  5. Financial Advisor

    A Day In The Life Of A System Trader

    Systems traders divide their time between trading, developing, backtesting, optimizing and forward testing, to create viable and high-probability trading systems.
  6. Investing

    Trading Systems: Designing Your System - Part 2

    The preceding section on designing a trading system examines the different types of markets in which to trade, and takes a look at the two basic genres of trading systems: trend-following and ...
  7. Investing

    Basics Of The Mechanics Behind Electronic Trading

    What was once associated with shouting traders and wild hand gestures has now become more closely associated with statisticians and computer programmers.
  8. Retirement

    The Purpose Of Having A Social Security Number

    When (and why) it is necessary to use the nine-digit number the United States government issues to individuals and when you should avoid it.
  9. Personal Finance

    Bank Lingo: Routing Number Vs. Account Number

    Each consumer bank account has its own personal ID. And so does the bank. How do these numbers function and how do they protect the account holder?
  10. Financial Advisor

    Top-Tier Home Security Systems: Which Are Best?

    Here's help sorting out the different types of home security systems, which features will work best for you and the costs.
RELATED FAQS
  1. Do mutual funds have CUSIP numbers?

    Learn what CUSIP numbers are and how they are used to classify securities, such as mutual funds, registered in the U.S. and ... Read Answer >>
  2. What is a CUSIP number?

    CUSIP stands for Committee on Uniform Securities Identification Procedures. Formed in 1962, this committee developed a system ... Read Answer >>
  3. How do I find the CUSIP number for a particular stock?

    Unfortunately, this can be a little difficult as CUSIP numbers are owned and created by the American Bankers Association ... Read Answer >>
  4. Do hedge funds have CUSIP numbers?

    Learn what a CUSIP number is, and whether this number is necessary for hedge funds, ETFs and various other types of investment ... Read Answer >>
  5. How does the ISIN numbering system work?

    The International Securities Identification Numbering (ISIN) system is an international standard set up by the International ... Read Answer >>
  6. Can municipal bonds be listed online so investors can chose the best investment for ...

    My wife and I have been in business together for almost 20 years. Recently, we formed an investment company so that we could ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center