Erasure Guarantee

AAA

DEFINITION of 'Erasure Guarantee'

A guarantee made by accredited institutions assuring the legitimacy and accuracy of changes made to bonds and securities. Erasure guarantees are used often in transferring securities. When an owner presents physical notes or share certificates as proof of ownership, special care is taken to ensure these documents are free of any corrections or erasures, particularly when significant sums of money are involved.

INVESTOPEDIA EXPLAINS 'Erasure Guarantee'

Banks and transfer agents for these securities may require an erasure guarantee, if there are any erasures or corrections on the document, to protect themselves against future claims if in the future it is determined that fraud has occurred. An erasure guarantee is similar to a document being witnessed by a notary public and typically takes the form of a medallion signature guarantee affixed to the erasure.

RELATED TERMS
  1. Bond

    A debt investment in which an investor loans money to an entity ...
  2. Medallion Signature Guarantee

    One of several special certification stamps which guarantee that ...
  3. Stock

    A type of security that signifies ownership in a corporation ...
  4. Shares

    A unit of ownership interest in a corporation or financial asset. ...
  5. Signature Guarantee

    A form of authentication issued by a bank or other financial ...
  6. Surrender Period

    The amount of time an investor must wait until he or she can ...
Related Articles
  1. Junk Bonds: Everything You Need To Know
    Bonds & Fixed Income

    Junk Bonds: Everything You Need To Know

  2. The Advantages Of Bonds
    Investing

    The Advantages Of Bonds

  3. Corporate Bonds: An Introduction To ...
    Bonds & Fixed Income

    Corporate Bonds: An Introduction To ...

  4. The Lowdown On Penny Stocks
    Investing Basics

    The Lowdown On Penny Stocks

Hot Definitions
  1. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  2. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  3. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center