What is CUSIP Number?

The Committee on Uniform Securities Identification Procedures is known by its full form, CUSIP. CUSIP number meaning is a unique nine-character alphanumeric identification number. The main purpose of CUSIP numbers is to provide securities with a uniform identity across multiple financial platforms. The administration and control of the system rests with the subsidiary of the American Bankers Association, which is called the CUSIP Service Bureau, and the distribution identification database in CUSIP, which issues CUSIP numbers to securities. With CUSIP numbers, financial markets have been standardized and globalized. It was initially intended for use in the United States but is now recognized and used internationally for certain assets.

How do CUSIP numbers work?

Now that we know what CUSIP is, let's look at how it functions. Similar to stock symbols, CUSIP numbers are distinct identifiers linked to a corporation's equity, debt, and other assets. The number is comparable to a serial number and has nine digits: CUSIP numbers are divided into three sections. 

• The company or securities issuer is represented by the first six characters. 
•  These characters are exclusive to each issuer and are based on the name of the company. CUSIP-6 is another name for it.
• Characters seven and eight stand for different kinds of security. 
• A check digit, or the ninth character, is produced automatically to ensure that the CUSIP number is accurate.

Examples of CUSIP Numbers

The CUSIP Service Bureau of the American Bankers Association is responsible for assigning CUSIP numbers. Here are a few instances of numbers: 

• Common stock of Apple Inc.: 037833100
• Bonds of Microsoft Corporation: 594918AL9.
• Vanguard Total Stock Market Index Fund: 922908363.
• Walmart's number: 922908363
• Preferred stock of the Coca-Cola Company: 191216100
• Amazon.com, Inc. warrants issued by.: 023135200
• Class B common shares of Berkshire Hathaway Inc.: 084670207
• Depositary shares of JPMorgan Chase & Co.: 46625H202

With this example of a cusip number, all the securities with numbers, like stocks, bonds, and index funds, among others, can be represented. This makes easy identification of securities by financial institutions through a standardized approach post the addition of these numbers, which simplifies trading, reporting, and tracking.

Since CUSIP numbers are assigned by the CUSIP Service Bureau of the American Bankers Association, the number will change over time. Please note that the numbers given above are for merely descriptive purposes and the actual figures may have changed or be out of date.

How to Find a CUSIP Numbers?

Here are the procedures you can take to find the CUSIP number for different securities on the Electronic Municipal Market Access, or EMMA, website: 

• Step 1: Visit the EMMA website to get started. 
• Step 2: Type the municipal security's name into the homepage search field. You can conduct a search using the name of the securities, the issuer, or any other relevant data. 
• Step 3: To examine more information, select the required security from the list of suggested searches. 
• Step 4: The CUSIP number and other relevant details are usually included in the security specifications.
• Step 5: Verify the data to make sure the CUSIP number is correct. Verify the same by comparing it to government records or any other available sources.

ISIN vs CUSIP

ISIN and CUSIP are both unique identifiers for securities. They differ in scope and format, with ISIN used globally and CUSIP primarily in North America.

Conclusion
The CUSIP is a unique identification number that is mostly used to identify bonds, mutual funds, stocks, and options. It's used in the USA and Canada. This number helps track and differentiate investments. Similar to CUSIP is an ISIN number alpha-numeric number 12 digits long that identifies the security across the globe with security. The better you grasp it, the less the borders of different countries will come your way to track down and manage your shares. A good stock market app will allow you to locate the CUSIP and ISIN numbers of the securities to further sharpen your skills in tracking and managing your investments.