Cage

Written By
Paul Tracy
Updated August 5, 2020

What is a Cage?

A cage is a department in a brokerage firm.

How Does a Cage Work?

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 Does a Cage Matter?

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.