Introduction to International Securities Identification Number (ISIN)
International Securities Identification Number or ISINs are a unique set of alphanumeric characters that identify a security being traded on the market. Where a ticker symbol shows the trading status of a stock based on the location it is being traded in, ISIN is specifically unique to the company universally.
Understanding International Securities Identification Number
ISINs are often confused with ticker symbols, since they both identify the security. Where a ticker does it at a geographical level that also shows the trading details on a certain exchange, the ISIN is universally recognizable. It is a format used across the globe to serve as an international identity number that also helps in clearing and settlements of stock.
The National Numbering Agency in every country is responsible for issuing the ISIN for a specific country. Securities like quities, debt instruments like bonds and debentures, derivatives, commodities and currencies have an ISIN of their own. The reason why a stock can be said as a fungible security is because of its ISIN.
Highlights of International Securities Identification Number
ISIN is a 12 digit code made of alphanumeric characters. The first two characters denote the issuing country, following which is the National Securities Identification Number (NSIN) and a final check digit.
ISINs were originally introduced in 1981, but didn’t gain importance or need until G30 adopted it in 1989. ISO declared them imperative an year after.
Ticker symbol shows the trading status of the stock such as the price, the percentage of change in price and trade volume etc. ISIN is the sole bearer of the original issue’s identity across all countries.
- ISIN is certified by the International Organization for Standardization which accounts for consistency in trading, clearing and settlement of issues in the markets worldwide.
A company’s stock may or may not have a ticker symbol to identify on a stock exchange, but no stock is absent of an ISIN number.
