Answered By: Business Information Services Last Updated: Feb 02, 2017 Views: 6
CUSIP stands for Committee on Uniform Securities Identification Procedures.
A unique CUSIP number identifies most securities; including: stocks of all registered U.S. and Canadian companies; and U.S. government; municipal and corporate bonds. This system is meant to facilitate the clearing and settlement process of securities. CUSIP Global Services; managed by Standard & Poor's on behalf of the American Bankers Association; assigns CUSIP numbers.
The number consists of nine characters (including letters and numbers) that uniquely identify a company or issuer and encodes the type of security. A similar system is used to identify foreign securities (CUSIP International Numbering System). In general; the first six digits are linked to the name of the party issuing the security. The next two characters identify the type of instrument (e.g. debt or equity) and identifies the issue. The final character is the result of a mathematical error-checking formula. Together these characters form a unique CUSIP specific to a particular security.
For more information about how the CUSIP process works; see https://www.cusip.com/cusip/index.htm.