Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Cage

What it is:

A cage is a department in a brokerage firm.

How it works (Example):

The cage is a physical location in which people at a brokerage firm handle physical securities and certificates. The location is called a cage because it usually has bars or other barriers to prevent other people from entering and exiting, and it usually has a vault.

Why it Matters:

The cage is a crucial part of any brokerage firm's operations because it ensures that clients' physical certificates are kept safe and sound, and that the right securities are exchanged in transactions.