International Securities Identification Number (ISIN)
What it is:
An international securities identification number (ISIN) is a universally accepted identifier exclusive to a particular issue of a security.
How it works (Example):
Every legitimate market-traded security issued worldwide is identified with its own unique ISIN. The ISIN is granted by the National Number Agency of the country in which the security is issued.
Why it Matters:
Since the ISIN is recognized internationally, it is an efficient tool for securities trading, since it helps differentiate securities issued from the same issuer.