Cusip vs Ticker Comparison Guide

A CUSIP number is a unique nine-digit code assigned to securities, such as stocks and bonds, to identify them in the US financial system.

Each CUSIP number is specific to a particular security, making it a crucial tool for investors and financial professionals.

The CUSIP system was developed in the 1960s to standardize the identification of securities, and it's still widely used today.

Ticker symbols are a form of securities identifier used worldwide for publicly traded securities. They are typically 2, 3, or 4 letters long and can contain both numbers and letters.

Stocks, like those listed on the US stock markets, have ticker symbols that consist of one or a few alphabet letters. In contrast, most Japanese stock tickers are 4-digit numbers.

The symbol "FA" is shared by the US-based First Advantage Corporation and the Canadian Fountain Asset Corp, highlighting that stocks from different countries can have the same symbols.

CFI codes are six characters long and follow alphabetical order.

These codes are used to uniquely identify a financial instrument upon its issuance and remain unchanged for the duration of the security's life.

CFI codes assist in grouping securities in a more systematic and consistent manner, which helps with organization and clarity.

In essence, CFI codes provide a standardized way of identifying financial instruments, making it easier to track and manage them.

Ticker symbols are a form of securities identifier used worldwide for securities that trade on a public stock exchange.

They are typically 2, 3, or 4 letters long, depending on the exchange the instrument is listed on.

Tickers can contain both numbers and letters, and they are also referred to as stock symbols.

A company's ticker symbol is assigned prior to being made available for trade, and it varies in length.

For example, the symbol "FA" is shared by the U.S.-based First Advantage Corporation and the Canadian Fountain Asset Corp.

Stock ticker symbols in the U.S. stock markets consist of one or a few alphabet letters.

In other stock markets, they can use both letters and numbers, such as most Japanese stock tickers which are 4-digit numbers.

Investors can navigate the stock market more easily by looking at ticker symbols because they are short and easy to remember.

Linking Tools are essential for researchers to connect data from different datasets. WRDS offers various tools to achieve this.

To link data from different datasets, researchers can use WRDS's linking tools. These tools enable the conversion of permanent identifiers, such as tickers, CUSIPs, and PERMNOs, to GVKEY and other identifiers.

WRDS's linking tools can perform several operations, including linking any type of identifier to GVKEY and one another. This is done through the CRSP > CRSP/Compustat Merged > Linking Table option on the WRDS home page.

To use the linking table, researchers can apply company codes individually, or as a list, or choose the entire database. They can also select individual linking options and output variables as needed.

The linking process involves several steps, including selecting the output format and submitting the query. Researchers can also convert tickers or NCUSIP codes into PERMCO or PERMNO using the CRSP > Tools > Translate to PERMCO/PERMNO option.

Here are some of the linking tools available on WRDS:

These linking tools can be accessed through the WRDS home page, making it easy for researchers to connect data from different datasets.

CUSIP numbers are assigned by an organization called CUSIP Global Services. They make it relatively easy for issuers to get a number by providing a straightforward online form on their website.

To get a CUSIP number, the issuer needs to provide some documentation about their business and fill out the required form in its entirety without any errors. This ensures that the application is accepted.

The application fee is a reasonable $100, and once the number is assigned, issuers need to pay an annual administration fee of $80 to maintain their status. This is a small price to pay for the benefits of having a CUSIP number.

All the required documents are listed on CUSIP Global Services' website, making it easy for issuers to prepare their application. Once the application is submitted and checked, an official CUSIP representative will contact the issuer to finalize the procedure.

Sedol and Isin are two unique identifiers used in the financial industry, but they're not as widely used as CUSIP or ticker symbols.

Sedol is a 6-character code used primarily in the UK and Europe, while Isin is an 12-character code used globally to identify securities.

Sedol and Isin are often used in conjunction with CUSIP or ticker symbols to provide a more comprehensive identification of a security.

A Sicovam is a six-character code used on French stock exchanges.

Sicovam stands for Société Interprofessionnelle pour la Compensation des Valeurs Mobilières.

In France, Sicovams serve a similar purpose as SEDOL codes do in the United Kingdom.

Sicovams can be converted into ISIN codes, just like CUSIPs and SEDOLs.

SEDOL stands for Stock Exchange Daily Official List, a seven-character unique code assigned to all securities listed on all small and big stock exchanges in the United Kingdom. These codes help traders, investors, and market analysts to identify securities.

A SEDOL code is alphanumeric, with the first six characters being alphanumeric codes and the seventh character representing the trailing check digit. The code is used for securities listed on the London Stock Exchange or traded in the British financial markets.

The utility of the SEDOL code lies in the swift and easy identification feature that it offers for the securities, thereby eliminating trading errors in the global marketplace. Each character in the code is equal to its position in the alphabet plus nine.

Here are some key facts about SEDOL codes:

A company seeking a SEDOL number submits a formal request application to the LSE, and the authorities verify if they possess a valid SEDOL license with the exchange.

CUSIP numbers are 9 characters long and consist of a unique identifier for the issuer, the type of security, and a check digit to verify the number's legitimacy. The check digit is automatically generated and is used to ensure that the CUSIP number is valid.

The first 6 digits, known as the base, identify the issuer of the security, while the next 2 characters identify the type of security. For example, the CUSIP number 037833100 for Apple Inc. indicates that the issuer is Apple Inc. and the type of security is common stock.

Here's a breakdown of the CUSIP number format:

CUSIP numbers are used to track trades and identify securities, and they are an essential part of the American security markets.

The TBA format is a specialized identification scheme for TBA mortgage-backed securities.

TBA CUSIPs are assigned by CUSIP Global Services (CGS) in collaboration with the MBSCC.

The TBA format incorporates a security's mortgage type, coupon, maturity, and settlement month into the identifier itself.

Here's a breakdown of the TBA algorithm:

The exact values for each position are available in a spreadsheet called the TBA Grid.

Let's take a look at some real-world examples of number formats. For instance, Apple Inc. uses the CUSIP number 037833100.

In the tech industry, companies like Cisco Systems and Google Inc. use CUSIP numbers like 17275R102 and 38259P508, respectively.

Microsoft Corporation, on the other hand, uses the CUSIP number 594918104. This is a common format used by many large corporations.

Oracle Corporation also uses a CUSIP number, specifically 68389X105. These numbers are used for various purposes, including financial reporting and trading.

Here are some examples of CUSIP numbers from the article:

The CUSIP number format is a crucial aspect of understanding these unique identifiers. The first 6 digits, also known as the base, identify the issuer of the security.

These 6 digits are unique to the entity that issued the security, whether it's a company, municipality, or government agency. This is the only purpose of the base, making it a vital part of the CUSIP number.

The 7th and 8th characters identify the issue or type of financial product. This means these 2 numbers tell you if something is a common stock, ETF, mutual fund, bond, or whatever else.

Each asset type has its 2-digit code, and there are dozens of these codes. However, it's worth noting that debt securities like bonds typically have letters, while equity securities use numbers.

Here's a breakdown of the CUSIP number format:

The 9th digit is automatically generated and is used to make sure that a CUSIP is legit and valid. It's calculated by multiplying all the other digits by 2, summing everything up, and then summing up the digits until you get a single-digit number.