CUSIP NUMBER
Back to GlossaryDefinition
The nine-digit identifier for a marketable security, issued by the Committee on Uniform Security Identification Procedures.
Summary
A CUSIP Number is a unique 9-character code (8 digits plus 1 check digit) that serves as a 'Social Security Number' for financial securities like stocks, bonds, and other investments. Created by the Committee on Uniform Security Identification Procedures, these codes help financial institutions, regulators, and investors accurately identify and track specific securities to prevent confusion and ensure proper record-keeping in trading and settlement processes.
Usage Context
Understanding CUSIP numbers is crucial when studying securities markets, trade settlement, regulatory compliance, portfolio management, and back-office operations. Essential for understanding how financial institutions track and process securities transactions.
Common Confusions
- Confusing CUSIP numbers with ticker symbols (CUSIP is for back-office operations, ticker is for trading)
- Thinking CUSIP numbers change when stock prices change (they remain constant)
- Assuming CUSIP numbers are the same as account numbers
- Believing CUSIP numbers are used globally (they're primarily North American)
