CUSIP
A 9-character alphanumeric identifier assigned to North American securities to standardize trading, clearance, and settlement.
What is CUSIP?
CUSIP (Committee on Uniform Securities Identification Procedures) is a 9-character alphanumeric code assigned to individual securities in North America—including stocks, bonds, and mutual funds—to uniquely identify them for trading, clearing, and settlement purposes. The first six characters identify the issuer, the next two identify the specific security (type and series), and the ninth is a check digit. CUSIPs are issued by CUSIP Global Services (CGS), operated by FactSet, and are used by U.S. and Canadian financial markets, clearing houses, and regulatory filings. The international equivalent is the ISIN, which incorporates the CUSIP for U.S. and Canadian securities.
Example
Apple Inc.'s common stock has CUSIP 037833100. The first six characters (037833) identify Apple as the issuer, the next two (10) identify it as common stock, and the final character (0) is the computed check digit. When a broker enters an Apple stock trade, clearing systems use this CUSIP to match buy and sell orders and settle the transaction.
Source: CUSIP Global Services — FactSet