Here in this article we will going to discuss about CUSIP number. Many of us don’t know what is CUSIP number. We will try to provide each and every detail from basic to advance about CUSIP number so keep calm stay with us read the whole article. We are quite sure at the end of the article you are pretty much clear about CUSIP number. So without any further delay let start the article.
CUSIP stands for Committee on Uniform Securities Identification Procedures which command the whole CUSIP system. CUSIP is kind of nine digit code which can be both (numeric or alphanumeric) which can be used to identifies the financial security purposing trade settlements. CUSIP number is a identification number a type of special and unique identification number which is given to all stocks and registered bonds in US and Canada, used to create solid contrast in between securities which are trade to public market. CINS number is a similar number which is used by Foreign Securities.
The CUSIP numbers are possessed by the American Bankers Association in addition with the standard peoples and the poor peoples. CUSIP number is created by using nine characters and in this nine characters there can be both letters as well as numbers. It is only allocated to all the stocks and bonds which are registered in US and Canada. Another number called serial number which is quite similar to the CUSIP number. The first 6th characters are called base or it can also be called CUSIP-6. The type of bond is identified by the 7th and the 8th digits.
Now only the 9th digit has left so 9th digit is “check digit” and it is generated automatically. CUSIP International Numbering system has a number which is widely used in foreign markets for the security purposes. In this particular situation 1st letter is a representation of the issuing country. For example E09876AA7 represent corporate bond issued in Spain. Spain is identified by the letter E.
These numbers are very useful as per many aspects it helps facilitate trade and the settlements. It allows to provide a identifier which is constant and help in differentiating the trade securities. Each type of trade and the CUSIP number which is corresponded to it is reported to facilitate the track actions and activities.
CUSIP number was formed in 1962 and the committee then developed system and that system was implemented in 1967 for identifying the securities and it is only specifically for Us and Canada reg. stocks. Many securities dealers allot the CUSIP number if you want to opt you can.
There are some examples of the world’s famous companies CUSIP numbers-
- Amazon 023135106
- Apple 037833100
- Facebook 30303M102
- Microsoft 594918104