One standardized method for uniquely identifying most securities, including stocks and registered bonds, is through Committee On Uniform Securities Identification Procedures (CUSIP) numbers.
A CUSIP number is a nine-character alphanumeric code that serves as a unique identifier for securities traded in the United States and Canada. Just like the stock symbols assigned to the shares of a publicly traded company, a CUSIP number is a unique identifier attached to the equity, debt, and other securities issued by a company.
It’s used to facilitate the clearance and settlement of trades. The first six characters identify the issuer and the type of security. The next two characters are known as the issue number, which identifies a specific issue of securities. The final character is a check digit used for validation purposes.
CUSIP numbers ensure accurate security identification and trade processing. They help prevent errors and ambiguity when buying, selling, or transferring securities. Furthermore, CUSIP numbers are often used by financial institutions, regulators, and data providers to track and report security information, such as prices, dividends, and corporate actions. CUSIPs are mostly useful for fixed-income securities due to variety of options from single issuer with different maturity dates.
There are several ways to locate the CUSIP number for a particular security:
Most online brokerage platforms provide CUSIP numbers for the securities held in your account.
Companies typically include the CUSIP number for their securities in financial reports and prospectuses.
Many financial websites and databases, such as FINRA, Yahoo Finance, Google Finance, and Bloomberg, brokerages e.g., Fidelity and many others offer CUSIP lookup tools.
Other countries may use different identification systems, such as the International Securities Identification Number (ISIN) or the SEDOL (Stock Exchange Daily Official List) code.