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Mutual Funds Videos 165 videos

Finance: What is Efficient Markets Theory?
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Finance: What is the Russell Index?
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Finance: What is a CUSIP Number? 119 Views


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Description:

What is a CUSIP Number? All publicly tradable equities and fixed income securities in North America have 9 digit ID code numbers that are registered by the Committee on Uniform Securities Identification Procedures (CUSIP). These CUSIP numbers are used to identify, verify and track tradeable US and Canadian registered securities.

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English Language

Transcript

00:00

Finance, a la shmoop. What is a CUSIP number? Close that's a Cusack number

00:09

867-53-09, yeah we know there. So yeah you know when you go to the grocery

00:13

store and the cashier swipes your apples eight times across that little bar code [Apple being scanned]

00:18

reader thingy and it doesn't work again and again and again and then she finally [Error coming up on the screen]

00:22

pulls back the plastic from where the Apple was tagged hunts for her glasses [Cashier putting on her glasses]

00:26

and then visually finds the number associated with that Apple and then just

00:31

manually types it in. Well that's the fruit equivalent of a CUSIP number [Guy talking in a supermarket]

00:36

A CUSIP number is well just that only applied to securities, stocks, bonds even

00:40

muni bonds. CUSIP stands for committee on uniforms security identification [The meaning of each letter is shown]

00:47

procedures, and is basically just the serial number system of securities, but [CUSIP definition written on a 100 dollar bill]

00:52

has nine digits, the first six represent the original issuer of the security like

00:57

coca-cola shares when it went public a gazillion years ago. Then the next two [The fix 6 digits are highlighted]

01:02

characters refer to that type of security at hand like is it a basic

01:06

equity bond, muni bond and the ninth digit is riboflavin yeah it's just there

01:12

to be sure the other digits are all accurate and assures that there's no [The 3 digits meaning are shown]

01:15

replication in any of the other CUSIP index number sets. So yeah CUSIP numbers

01:21

make the securities easier to track because it's awfully hard to get a

01:25

microchip into one of them. [Microchip pulled out of a bond certificate]

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