CUSIP Number
A CUSIP Number (Committee on Uniform Securities Identification Procedures) is a unique identifier assigned to all registered U.S. Securities. It consists of nine characters: the first six identify the issuer, the next two identify the specific issue, and the final character is a Check digit used for error detection.
Examples of CUSIP Numbers include:
- Apple Inc. Common Stock: 037833100
- U.S. Treasury Bond: 912828V30
- Ford Motor Company: 345370860
In practice, CUSIP Numbers are used by Financial Institutions for various purposes such as trading, settling transactions, and maintaining records. For instance, when an investor buys Shares of a Stock, the CUSIP Number helps ensure that the correct security is bEINg traded and that ownership is accurately recorded.