What is CUSIP Number
The internet has globalised the world of trading, with investors and traders now investing in companies that are listed on multiple international stock exchanges. Hence, it becomes important for investors to track and monitor each security.
To avoid the confusion that stems from such tracking, the American Bankers Association introduced the concept of CUSIP.
In this blog, let's explore the concept of a CUSIP number, how it works, and how to find it.
What is CUSIP Number
- CUSIP full form stands for Committee on Uniform Securities Identification Procedures. CUSIP is a 9-character unique alphanumeric identification number.
- It identifies various types of securities, such as stocks, mutual funds, and bonds, among others.
- Financial institutions such as brokerage firms, mutual fund companies, and custodians use this number to manage and track portfolios, as well as for reference, reporting, and research purposes.
- CUSIPs are prevalent in the USA and Canada and are overseen by the American Bankers Association. It assigns CUSIP numbers to securities and maintains a comprehensive database of these identifiers.
How Does a CUSIP Number Work
A CUSIP number is a unique alphanumeric 9-digit number assigned to a security; it could be equity, debt, or any other asset of an entity. The number consists of 3 parts:
- The first 6 characters identify the firm or issuer of the security. These characters, known as the CUSIP-6, are derived from the company's name and are unique for every issuer.
- The 7th and 8th characters indicate the type of security.
- The 9th character serves as a check digit, ensuring the accuracy of the CUSIP number.
How to Find a CUSIP Number
To find out the CUSIP number for various securities on the Electronic Municipal Market Access, or EMMA website, here are the steps that you can follow:
Step 1: To start with, navigate to the EMMA website.
Step 2: Enter the name of the municipal security into the search box on the homepage. You can search using the issuer's name, the name of the security, or any other relevant details.
Step 3: Select the desired security from the search suggestions to view more details.
Step 4: The security details will typically include the CUSIP number along with other essential information.
Step 5: Check the information to ensure the accuracy of the CUSIP number. Validate the same by cross-checking it with official documents or any other sources.
The Bottomline
Tthe CUSIP is a unique identification number prevalent in the USA and Canada, primarily used to identify stocks, options, mutual funds, and bonds.
This number helps distinguish and track investments. Similar to CUSIP, the ISIN number is a 12-digit alpha-numeric code that provides a global identity to a security.
Having a clear understanding of the same will help you track and manage your holding, irrespective of national boundaries.
|
You may also be interested to know |
|
|
1. |
Types of Companies in India |
|
2. |
List of Navratna Companies in India |
|
3. |
List of Miniratna Companies in India |
|
4. |
List of Maharatna Companies in India |