I have to admit I was pretty freaked out when I logged into my Mint.com account and checked on my investments. Once my Roth IRA account was updated, the balance was half of what it was before! What the hell?! I was immediately freaked out. I refreshed the update hoping it was just a glitch with Mint. No luck. Mint as usual has my correct account balance. So then I go to login to my Roth account and notice the same number. What is going on?
I check the balances and transactions and see that one of my stocks was missing. (One stock is half of my account, yes I know I need to diversify lol) So I decide to do some more digging. I know I didn’t have a stop-loss set so I know I didn’t sell it. I check the buys and sells and make sure there’s no funky business going on there, or someone using my account. I just changed passwords on everything so I’m not thinking I got hacked or anything. Heck, I can’t even remember most of my new passwords. I’ve already had my new bank password reset about 3 times because I keep forgetting it. 
What Happened to My Stock?
So the next thing I do is head over to Morningstar.com and type in my ticker. I immediately look at the recent news to see if there was news of a merger or something. I really should have an alert set up for the stocks in my portfolio, but I haven’t gotten around to it yet. Then I see this…
Oh! I am immediately calm. That’s what happened. Did you see that? On October 3rd, they changed their name. Do you lose stock in a name change? No. Did I just miss it in my transactions and it was really there inder the new name? No again.
Right now the stock is in the process of filing a new name and CUSIP number. The CUSIP number is a unique identifier for stocks, bonds, ETFs, mutual funds, etc. It’s like a Social Security number. And like a Social Security number, once it is attached to one record, it cannot be used again. So while my broker handles the changes behind the scene and is waiting to receive the new shares to put in my account, I have to look at this balance that is not truly reflective of my entire account.
What is a CUSIP number?
A CUSIP number is the U.S. identification number assigned by the CUSIP Service Bureau (operated by Standard and Poor’s Corp. for the American Banking Association) for both equity and debt instruments. It is the U.S. standard for identification and facilitates the orderly and accurate trade processing and the ultimate settlement of transactions. The CUSIP Service Bureau can be reached directly at +1 212 438 6565 or www.cusip.com. source
What Else Would Cause a CUSIP Change?
There are a few more instances that would cause a CUSIP change and you should be aware of them. When there is a merger, and new shares are issued, there is a CUSIP change. These occurences could also warrant a CUSIP change.
- Merger
- Reorganization
- Reverse Stock Split
- Forward Stock Split
- Emergence from Bankruptcy
Interested to see what your stock’s CUSIP number is? Fidelity has a great service that allows you to look up a cusip number that I actually use quite often.
Has this ever happened to you?
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10 comments
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Novel Investor says:
October 12, 2011 at 1:13 pm (UTC -4 )
Good tip to keep a lookout for, if my broker seems to misplace a position. I usually keep up-to-date on my stock news, but it would still freak me out seeing something missing.
FinancialSuccessforYoungAdults says:
October 13, 2011 at 10:45 am (UTC -4 )
Exactly! Especially if it’s a substantial amount of your portfolio.
20's Finances says:
October 13, 2011 at 11:54 am (UTC -4 )
What a nightmare (initially at least)! I am glad I haven’t had that happen to me (yet). I don’t know what I would have done. But then again, I have my ROTH set up slightly differently.
FinancialSuccessforYoungAdults says:
October 14, 2011 at 12:47 pm (UTC -4 )
Yeah, my heart dropped immediately. I was freaking out.
Anonymous says:
October 13, 2011 at 8:56 pm (UTC -4 )
Big whew! We’ve lost roughly $5000 over the last two months, but some of it’s bounced back, and we have a very long time horizon. I see stocks right now as the clearance rack at Target.
FinancialSuccessforYoungAdults says:
October 14, 2011 at 12:47 pm (UTC -4 )
Exactly! Get it while you can huge discounts! lol
Robert says:
October 15, 2011 at 2:28 pm (UTC -4 )
I’ve had it happen before as well. You need to read your statements, as they usually highlight upcoming changes!
FinancialSuccessforYoungAdults says:
October 15, 2011 at 6:08 pm (UTC -4 )
YFS says:
October 16, 2011 at 1:24 pm (UTC -4 )
LOL.. I could imagine your face as you seen your account balance cut in half. Great explanation on what would cause a CUSIP number change.
LaTisha says:
October 25, 2011 at 7:16 am (UTC -4 )
Yes! I did a jaw drop thing! lol
I’m happy to say that everything is settled now, and the stock is actually one of the top earners in my portfolio so you can imagine my shock.
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