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.

RELATED TERMS
  1. Uphold

    Uphold is a cloud-based digital currency exchange and platform.
  2. Retired Securities

    Retired securities have been repurchased by the issuer out of ...
  3. Trust Certificate

    A trust certificate is a bond or debt investment, usually in ...
  4. Audit Committee

    An audit committee is one of the main operating committees of ...
  5. Security

    A security is a fungible, negotiable financial instrument that ...
  6. Investment Securities

    Investment securities are securities (tradable financial assets ...
Related Articles
  1. Investing

    Old Stock Certificates: Lost Treasure or Wallpaper?

    What if you've discovered some old shares in bearer form? Follow our tips to find if these old stock certificates are worth anything.
  2. Financial Advisor

    Series 66 Exam Prep: The Uniform Securities Act

    Before you take the series 66, you need to understand the Uniform Securities Act and the Blue Sky Laws.
  3. Financial Advisor

    Moving Average

    Learn about this basic technical indicator and how you can use it to chart the value of a security's price over a set period.
  4. Investing

    Why Committees Shouldn't Make Investment Decisions

    Investing by committee may seem like the democratic way, but it can lead to bad investing decisions.
  5. Investing

    Investing Basics - Stocks

    Stocks are one of the most common investments – and a great starting point to learn about investing. This video explains the basics of investing in the stock market.
  6. Insights

    American Airlines Uniform Manufacturer Speaks Out About Complaints (AAL)

    The manufacturer behind American Airlines’s new uniforms penned a letter saying that, despite complaints, its uniforms are safe to wear.
  7. Personal Finance

    Basic Economy: Pay the Same, Get Less?

    Basic economy is supposed to be cheaper, but are you just paying the previously regular economy fare and getting less for it?
  8. Trading

    Forex Market Basics

    The foreign exchange market is a market where participants buy, sell, and exchange trillions of dollars worth of currencies daily. Learn the basics of the FX market.
  9. Investing

    Evaluating the Board of Directors

    Learn how evaluating the board of directors corporate structure can tell you a lot about a company's potential.
  10. Insights

    Is It Time for a Universal Basic Income?

    Read our detailed history and learn why the old dream of a universal basic income is back on the minds of the public, politicians, Elon Musk and more.
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 Answer >>
  2. After a Stock Split, What Happens to Certificates?

    Find out why a stock split will have little effect on the holders of stock certificates. Learn how shares are held in electronic ... Read Answer >>
  3. Why Are Securities Held 'In Street Name'?

    Buying or selling securities through a broker means they're held in your broker's name. Read Answer >>
Trading Center