| What are CUSIP numbers
On the right front side of most modern certificates is a
nine-character number called the 'CUSIP' number. CUSIP is
an abbreviation for the Committee on Uniform Security Identification
Procedures. That committee developed the numbering system
to help in the clearing of the monumental numbers of shares
traded daily on U.S. and Canadian exchanges.
Today, Standard & Poor’s manages the system and
is responsible for assigning new numbers. It also administers
a similar nine-character 'CINS' numbering system for international
issues (the CUSIP International Numbering System.)
In both systems, the first six characters are unique to specific
companies. The next two characters represent issues made by
that company. The ninth character is a check-digit that allows
accuracy checking, regardless of whether the CUSIP number
was entered by hand or by optical reader.
In general, all modern issues carry the CUSIP number, even
the vast number of government issues. The exceptions are certificates
intended to circulate and trade outside of the Clearing House
system. These include certificates such as fractional shares
and issues produced by small, private placements
The CUSIP system was developed in 1967, but CUSIP numbers
do not seem to have appeared on many collectible railroad
certificates prior to 1970.
Larger companies usually had their printers pre-print
all nine characters of the CUSIP number on their certificates.
Less frequently, they pre-printed the first six characters,
and added the final three just prior to issuance. In an effort
to use their older supplies of certificates, companies sometimes
overprinted CUSIP numbers.
To learn more about CUSIP numbers, visit http://www.cusip.com/cusip/cusipwelcome.html
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