Medallion Signature Guarantee

AAA

DEFINITION of 'Medallion Signature Guarantee'

One of several special certification stamps which guarantee that the signature authorizing the transfer of securities is authentic. A Medallion signature guarantee is commonly required when an owner wants to sell or transfer securities, such as stocks or bonds, which are held in physical certificate form. If you hold securities through a broker, you will not need to get a signature guarantee to sell or transfer the securities.

INVESTOPEDIA EXPLAINS 'Medallion Signature Guarantee'

In order to provide a Medallion signature guarantee, an institution must be a member of one of three Medallion signature guarantee programs: the Securities Transfer Agents Medallion program, the Stock Exchanges Medallion Program and the New York Stock Exchange Medallion Signature Program. Normally, you can obtain a Medallion signature guarantee at a financial institution where you are already a customer. A small charge may be assessed for this service by your bank.

RELATED TERMS
  1. Public Securities Association - ...

    The predecessor association to the Bond Market Association, which ...
  2. Erasure Guarantee

    A guarantee made by accredited institutions assuring the legitimacy ...
  3. Bond

    A debt investment in which an investor loans money to an entity ...
  4. Transfer Agent

    A trust company, bank or similar financial institution assigned ...
  5. Securities Transfer Association ...

    A verification system used by many different institutions to ...
  6. Signature Guarantee

    A form of authentication issued by a bank or other financial ...
Related Articles
  1. Principal Trading and Agency Trading
    Investing Basics

    Principal Trading and Agency Trading

  2. Can Good News Be A Signal To Sell?
    Fundamental Analysis

    Can Good News Be A Signal To Sell?

  3. 7 Steps To A Successful Investment Journey
    Entrepreneurship

    7 Steps To A Successful Investment Journey

  4. The Illusion Of Diversification: The ...
    Fundamental Analysis

    The Illusion Of Diversification: The ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center