The CUSIP number, an acronym for the Committee on Uniform Securities Identification Procedures, is a 9-character alphanumeric code assigned to all stocks and registered bonds in the United States. The CUSIP number functions as a unique identifier, ensuring that each security can be precisely tracked and managed, facilitating clear and consistent categorization in the financial markets.
Structure and Components of a CUSIP Number§
A CUSIP number typically follows this structure:
- Base (6 characters): Identifies the issuer and remains consistent across different securities from the same issuer.
- Issue Number (2 characters): Differentiates between different issues from the same issuer.
- Check Digit (1 character): Enhances the security and accuracy of the entire CUSIP.
For example, in the CUSIP number “123456AB7”:
- “123456” would be the issuer code.
- “AB” would represent the specific issue.
- “7” would be the check digit.
The Importance and Use of CUSIP Numbers§
CUSIP numbers play a crucial role in:
- Identification: They help in distinguishing between different securities within the financial market.
- Settlement Procedures: They streamline and standardize the settlement process across markets.
- Trading and Regulatory Reporting: Essential for accurate trading data reporting to regulators.
How to Find a Stock or Bond CUSIP§
Using Financial Service Providers§
One common method to locate a CUSIP number is through financial service providers such as:
- Brokerage Firms: Many brokers offer search tools for investors.
- Financial Websites: Pages like Morningstar and Bloomberg often list CUSIP numbers in their security profiles.
- Institutional Systems: For institutional investors, dedicated terminals like Bloomberg Terminal provide comprehensive securities data, including CUSIP numbers.
Official Sources§
CUSIP numbers can also be retrieved through official institutions, such as:
- CUSIP Global Services (CGS): The official issuing body provides direct access to CUSIP information.
- Company Filings: Public companies often list their securities’ CUSIP numbers in filings like 10-Ks and 10-Qs, available on the SEC’s EDGAR database.
Verification and Accuracy§
Always ensure the accuracy of the information by cross-referencing multiple sources, particularly for large transactions or regulatory reporting.
Examples and Applications§
Example of a Stock CUSIP§
Consider Apple Inc. with a CUSIP number of “037833100”. Each segment of this identifier signifies:
- 037833: The base number for Apple Inc.
- 10: The specific classification for this security (common stock).
- 0: The check digit.
Application in Trading and Reporting§
For example, when an investor buys or sells Apple stocks, this CUSIP is used to:
- Match the trade on exchanges.
- Report the transaction to regulatory bodies.
- Update ownership records accurately.
Related Terms and Concepts§
ISIN (International Securities Identification Number)§
A unique identifier similar to CUSIP but used internationally. It combines the CUSIP number with the country’s ISO code.
Ticker Symbol§
While similar, ticker symbols are more commonly used for trading and are often shorter. They also do not provide the same level of detailed identification as CUSIP numbers.
FAQs§
What is the difference between a CUSIP and an ISIN?
Can private companies have a CUSIP?
Is there a charge for accessing CUSIP information?
References§
- CUSIP Global Services
- Securities Exchange Act of 1934
- Investopedia’s CUSIP Number Definition
Summary§
The CUSIP number is a vital tool in the U.S. and Canadian financial markets, facilitating the identification, trading, and settlement of securities. By understanding how to find and use these numbers, investors and professionals can navigate the financial landscape with greater precision and confidence.
