CUSIP Number- (Committee on Uniform Securities Identification Procedures)
The Committee on Uniform Securities Identification Procedures (CUSIP) is a committee overseen by the American Bankers Association that is responsible for creating a unique identification number for all stocks and registered bonds in the United States and Canada. This number, known as the CUSIP number, is used to create a concrete distinction between securities that are traded on public markets. The CUSIP system has been in place since 1967 and has become an essential tool for both investors and financial institutions.The primary benefit of using CUSIP numbers is that they provide unambiguous identification of securities. This allows investors to easily track their holdings and also makes it easier to determine whether or not a particular security is being offered for sale. In addition, the CUSIP system can be used to help prevent fraud by making sure that only authorized securities are traded on public markets. Overall, the CUSIP system provides an important layer of security and organization for the North American securities market.
