Similar to the three- or four-letter ticker symbol used to identify a company’s shares of stock that are publicly traded, CUSIP numbers are used to process and settle securities transactions. Although stock-issuing companies have CUSIP numbers, CUSIP numbers are more prominently used to identify and track bonds. For example, a municipal entity such as the Illinois State Toll Highway Authority has more than 100 CUSIP numbers designating outstanding bonds. CUSIP Global Services, which operates the CUSIP system on behalf of the ABA, has a master file that stores CUSIP numbers of more than 10 million securities offered in the U.S. and Canada.
How CUSIP Numbers Work
CUSIP numbers are publicly available. Issuers also often list their CUSIP number on official documents such as financial statements. For example, Apple (AAPL), like other public companies, lists its CUSIP number as 037833100 on its financial statements filed with the U.S. Securities and Exchange Commission (SEC). The Municipal Securities Rulemaking Board (MSRB) operates the Electronic Municipal Market Access (EMMA) website, where you can find a wealth of information about securities using their CUSIP numbers.
CUSIP vs. CINS and ISIN numbers
The CUSIP International Numbering System (CINS) is an identification system developed in 1989 as an extension to CUSIP for the purpose of identifying issuers of investible interests in more than 30 non-North American markets. Like CUSIP numbers, CINS numbers contain nine characters, with a letter in the first position that signifies the issuer’s country or geographic region. The International Securities Identification Number (ISIN) is a global code that facilitates cross-border trading of securities.
What It Means for Investors
Individual investors can use CUSIP numbers to access information on stocks or bonds they are considering. However, they are more likely to research stocks, mutual funds, and other investment options by looking them up by name and reviewing financial reports such as a 10-K, and other reports that publicly owned companies are required to file with the U.S. Securities and Exchange Commission (SEC). CUSIP numbers are useful to brokerages and other financial institutes as a means of mapping individual securities to investors to make sure transactions are properly settled and recorded, as well as to track payouts of dividends.
