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. Stock

    A type of security that signifies ownership in a corporation ...
  2. Signature Guarantee

    A form of authentication issued by a bank or other financial ...
  3. Bond

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

    One of several special certification stamps which guarantee that ...
  5. Shares

    A unit of ownership interest in a corporation or financial asset. ...
  6. Surrender Period

    The amount of time an investor must wait until he or she can ...
Related Articles
  1. Bonds & Fixed Income

    Junk Bonds: Everything You Need To Know

    Don't be fooled by the name - junk bonds may be for you if you know how to analyze them.
  2. Investing

    The Advantages Of Bonds

    Bonds contribute an element of stability to almost any portfolio and offer a safe and conservative investment.
  3. Bonds & Fixed Income

    Corporate Bonds: An Introduction To Credit Risk

    Corporate bonds offer higher yields, but it's important to evaluate the extra risk involved before you buy.
  4. Investing Basics

    The Lowdown On Penny Stocks

    Think penny stocks will make you rich? If you don't understand the risks, you could end up penniless.
  5. Retirement

    Bond Basics Tutorial

    Investing in bonds - What are they, and do they belong in your portfolio?
  6. Investing Basics

    What is the effect of price inelasticity on demand?

    Find out why price inelasticity of demand shows the relationship between demand and price if the price of an inelastic good is either lowered or raised.
  7. Investing

    Reassessing Your Approach To Bond Investing

    Rethinking your fixed-income portfolio may not resonate in quite the same way as dropping 10 pounds or finally giving up that smoking habit.
  8. Mutual Funds & ETFs

    How much of my total assets should I be keeping in my money market account?

    Investing a portion of total assets in a cash position such as a money market account provides investors access to funds in the case of an emergency.
  9. Bonds & Fixed Income

    How does preferred stock differ from company issued bonds?

    Discover the primary differences between preferred stock and corporate bonds, two income-generating investment vehicles issued by certain companies.
  10. Bonds & Fixed Income

    What is the difference between yield to maturity and the yield to call?

    Determining various the various yields that callable bonds can provide investors is an important factor in the bond purchasing process.

You May Also Like

Hot Definitions
  1. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  2. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  3. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  4. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  5. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  6. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
Trading Center