What is a CUSIP Number? Exploring Its Legal Definition and Importance

Definition & Meaning

A CUSIP number is a unique identifier assigned to each security issue and its components, such as STRIPS (Separate Trading of Registered Interest and Principal of Securities). This identifier is essential for the tracking and trading of securities in the financial markets. CUSIP stands for Committee on Uniform Securities Identification Procedures, and the numbers are issued by the CUSIP Service Bureau, which is operated by Standard & Poor's Corporation.

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Legal Use & context

CUSIP numbers are commonly used in the finance and investment sectors. They play a crucial role in legal and regulatory contexts, particularly for transactions involving securities. Legal professionals may encounter CUSIP numbers when dealing with investment contracts, securities litigation, or compliance with financial regulations. Users can manage related forms and documents using templates available through services like US Legal Forms.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

For instance, if an investor purchases a U.S. Treasury bond, the bond will have a specific CUSIP number that distinguishes it from other securities. This number is used in all transactions related to that bond.

(hypothetical example) If a company issues a new stock, the stock will receive a CUSIP number to facilitate its trading on exchanges.

Comparison with related terms

Term	Definition	Difference
CUSIP Number	A unique identifier for securities.	Used specifically for tracking and trading securities.
ISIN	International Securities Identification Number.	Used globally, while CUSIP is primarily for U.S. securities.
SEDOL	Stock and Exchange Daily Official List number.	Used in the UK and Ireland for securities identification.

Common misunderstandings

What to do if this term applies to you

If you are dealing with securities and need to reference a CUSIP number, ensure you have the correct identifier for the specific security. For assistance, consider using templates from US Legal Forms to help manage related documentation. If your situation is complex, consult a legal professional for tailored advice.

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Quick facts

Typical Fees: Varies based on the service provider.
Jurisdiction: Primarily U.S. financial markets.
Possible Penalties: Non-compliance with securities regulations can result in fines.