As an investor, the world of finance can be overwhelming. The number of securities traded on exchanges is staggering, and keeping track of them all can be challenging. However, there is a unique identifier that can help simplify the process: a CUSIP.
A CUSIP number is a unique identifier assigned to securities issued by companies, similar to stock symbols for publicly traded companies. This system is owned by the American Bankers Association in collaboration with Standard & Poors, and is used to facilitate the settlement and clearance of associated securities. In this article, we will explore what a CUSIP is, its importance, and how to look up a CUSIP using our free interactive tool.
CUSIP stands for Committee on Uniform Securities Identification Procedures. A CUSIP is a nine-digit alphanumeric code that identifies securities, including stocks, bonds, mutual funds, and other financial instruments. When a new security is issued, a unique identifier is assigned to track it throughout its lifetime.
The CUSIP system was established in 1964 to simplify identifying securities among brokers, dealers, and other financial institutions. Before the CUSIP system, identifying securities was a cumbersome and time-consuming process, often leading to errors in tracking and trading securities. The CUSIP system streamlined this process, making it easier for investors to buy and sell securities.
Think of a CUSIP as an added tracking layer available to sophisticated investors. With 13 U.S.-based stock exchanges and 5 Canadian-based exchanges, tracking securities across them can be a challenge. Hundreds of companies are dual-listed, meaning they can be purchased and tracked across multiple exchanges. CUSIP made the exchange of securities more efficient, secure and reliable.
The American Bankers Association (ABA) manages the CUSIP system on behalf of the financial industry. The ABA assigns CUSIP numbers to new securities as issued and maintains a database of all CUSIP numbers. This database is accessible to investors, financial analysts, and researchers, who use it to track the performance of individual securities.
An infographic explaining how to read Apple’s CUSIP number
Now the big question is, how do you read a CUSIP number? To answer that question, let’s look at an example: Apple Inc. Their CUSIP number is 037833100.
Are you looking to invest in a security and need to find its CUSIP? You're in luck! There are several methods for looking up CUSIPs, depending on the type of security.
One of the most common methods for finding a CUSIP is using a financial database. There are dozens of financial websites that provide CUSIP databases that are free to use. Simply enter the name of the security you are looking for, and the database will provide the CUSIP.
If you want to go straight to the source, CUSIP.com is the official website of the American Bankers Association (ABA), which maintains the CUSIP system. Users can search for CUSIP numbers by company name, security type, or other search criteria.
Another option for finding a CUSIP is searching for it on a company's investor relations website. Many companies list their CUSIPs on their website, making it easy for investors to find the information they need. The CUSIP is usually found on the company's profile page or in their financial statements.
Various platforms, such as Charles Schwab all have basic CUSIP search tools. Remember that most of them are outdated and can be difficult to use. That being said, most major institutions should offer a CUSIP lookup tool that allows users to search for CUSIP numbers by company name, ticker symbol, or other search criteria. You can also use the tool to look up mutual funds and exchange-traded funds (ETFs).
However, many of these tools are outdated and difficult to use. Our interactive tool is the best option for investors to easily search for CUSIP numbers in seconds. If you hope to quickly search for information in a good-looking portal, use the Wizest CUSIP Search tool above.
It's important to note that not all securities have a CUSIP. While most stocks and bonds have a CUSIP, other types of securities, such as options and futures contracts, may not. If you're unsure whether a security has a CUSIP, research by using our tool or consulting with a financial professional is always a good idea.
So… at the end of the day, why are CUSIPs important? They play a crucial role in the financial industry as a unique identifier for publicly traded securities in the United States and Canada. Keeping it as straightforward as possible, there are four key reasons why CUSIPs matter:
The four other methods to identify stocks
CUSIP codes are not the only method used to identify securities. There are several systems used to identify securities, including ISIN, SEDOL, and ticker symbols. Each of these systems has its own unique characteristics and is used for different purposes.
Name | What is it? |
ISIN International Securities Identification Numbering system | An internationally recognized, 12-character alphanumeric code that is assigned to all securities. It can be used to identify them in international transactions. |
SEDOL Stock Exchange Daily Official List | A seven-digit code used to identify all securities listed and trading on the UK securities market. |
CIKCentral Index Key | An eight-digit code used on the SEC's computer systems to identify corporations and individual people who have made filings with the SEC. |
FIGIFinancial Instrument Global Identifier | A 12-digit code, which is currently being proposed as a comprehensive new tool to complement existing standards like the ISIN. It combines security-specific information, trade settlement data and risk aggregation into one number. |
Apple’s ISIN: US0378331005
The ISIN system was developed by the International Organization for Standardization (ISO) to provide a unique identifier for securities that can be used anywhere in the world. The first two characters of an ISIN code represent the country where the security was issued. ISINs are most commonly used in the trading and settlement of securities.
Banks, brokerages, stock exchanges, and other financial institutions around the world to use ISINs to uniquely identify securities and facilitate their trading and settlement across borders. Additionally, ISINs are also used by regulators to monitor and track transactions for compliance and enforcement purposes. CUSIP and ISIN are both used to identify securities. CUSIP tends to be more popular in North America, while the ISIN is an international standard.
The simplest and most efficient way to convert a CUSIP to an ISIN is via an online converter tool. However, if you are interested in learning about the mathematical formula, you can find dozens of explainer posts on Stack Overflow.
Apple’s SEDOL: B0YQ5W0
The Stock Exchange Daily Official List (SEDOL) number is a unique identifier assigned to securities listed on the London Stock Exchange and other exchanges in Europe. Much like the CUSIP in North America, SEDOLs are widely used by investors, traders, and regulators to track securities and facilitate the settlement process.
A SEDOL is composed of seven characters, including a six-digit alphanumeric code followed by a randomized check digit. The first six characters of a SEDOL identify the issuer and type of security, while the last character is a check digit used to ensure accuracy. The London Stock Exchange is responsible for assigning SEDOLs to securities.
Much like the above, the best way to go about converting a CUSIP to a SEDOL is via an online converter. If you are willing to connect Yahoo Finance with excel, you can use a formula to convert CUSIPs to SEDOLs, and SEDOLs to tickers.
Apple’s CIK: 320193
The Securities and Exchange Commission (SEC) requires companies and individuals to file various disclosures with the agency. These disclosures may include annual reports, registration statements, and other filings. To help identify these filers, the SEC assigns a unique identifier called the Central Index Key (CIK).
The CIK is a ten-digit code that is used to identify filers in the SEC's Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system. This system allows investors and the general public to access a wide range of information about companies and individuals who have filed disclosures with the SEC. The CIK is also used to track changes in the ownership of securities, such as stocks and bonds, and to help prevent fraud and insider trading.
When a company or individual files a disclosure with the SEC for the first time, they are assigned a CIK. The SEC maintains a database of all CIKs, which is publicly available on its website. Investors can use the CIK to search for specific filings or to browse through all of the disclosures filed by a particular company or individual. For the most part, CIKs are typically used by researchers and data mining investors looking for specific information on a company’s stock or other types of securities.
Apple’s FIGI: BBG001S5N8V8
The Financial Instrument Global Identifier (FIGI) is a 12-character code that has become a widely recognized global standard for identifying financial instruments like equities, bonds, options, and futures.
It was created in response to the need for a universal and standardized system to identify financial instruments across different asset classes, exchanges, and jurisdictions. FIGI codes have been created for more than 300 million unique securities, representing most asset classes of the financial markets.
If we already had CUSIP, SEDOL, CIK and tickers, why add FIGI? It comes down to improving transparency, reducing errors, and increasing efficiency. At the end of the day, all of us would benefit from a safer and more efficient financial system. FIGI codes could be the answer to streamlining global financial exchanges.
Our solution
At the end of the day, what do you need to take away from this article?
A savvy investor should use every tool available to them when researching potential securities. One of the most critical items in an investor's toolkit is a CUSIP code. The code is a unique identifier assigned to each security traded in the United States and Canada. The code consists of nine characters, which can be a combination of letters and numbers. It is used to identify stocks, bonds, and other securities.
With the help of a CUSIP code, an investor can easily track the performance of their investments and stay up-to-date with any changes related to the security. This can be especially helpful for those who have a diverse portfolio, as it can be difficult to keep track of all the securities they own.
Additionally, a CUSIP code can be used to research and compare different securities. By looking up the CUSIP code of a particular security, investors can access a wealth of information about the security, including its performance history, financial statements, and news articles related to the security.
A CUSIP code is an essential tool for any serious investor. With our free interactive tool, finding a CUSIP is now quicker and easier than ever before. So, if you haven't already, be sure to add these codes to your investment toolkit today!
You can look up a CUSIP number using various methods such as online tools, databases, and other resources. Some options include the official CUSIP website, financial databases like Bloomberg and Morningstar, and investor platforms like E*TRADE and Charles Schwab.
A CUSIP number is a unique identifier for financial instruments, such as stocks, bonds, and mutual funds. It consists of nine characters and is assigned by the Committee on Uniform Securities Identification Procedures. The number provides important information about the financial instrument, such as its issuer, type, and maturity date. It is widely used by investors, brokers, and financial institutions to identify and track securities in their portfolios.
No, ISIN (International Securities Identification Number) and CUSIP (Committee on Uniform Securities Identification Procedures) are not the same, but they serve a similar purpose. Both are unique identifiers for securities that facilitate trading and settlement. However, ISIN is an international standard, while CUSIP is primarily used in the United States.
Yes! CUSIP numbers are always 9 digits long. The first six characters represent the issuer of the security, while the seventh and eighth characters represent the type of security, and the ninth character is a check digit.
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