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What is a Medallion signature?

A:

Quick Answer

A Medallion signature is the guaranteed signature required before an owner of securities in the form of a physical certificate can sell or transfer them. The process of getting a Medallion signature helps to keep securities safe from being transferred illegitimately with a forged signature.

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Full Answer

Transfer agents heavily suggest getting signature guarantees because then the agents are limited in liability in the event of a transfer done with a forged signature. Transfer agents may refuse to honor a signature guarantee done outside of a recognized Medallion Signature Guarantee program. There are three Medallion Signature Guarantee programs: the Securities Transfer Agents Medallion Program, the Stock Exchanges Medallion Program and the New York Stock Exchange Medallion Program.

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Related Questions

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    How do I get a Medallion signature guarantee?

    A:

    In the United States, a Medallion signature guarantee can be obtained from a bank, credit union or financial institution that is part of the Securities Transfer Association Medallion Program or the NYSE Medallion Signature Program. A notary public cannot provide this service.

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    When was the stock market invented?

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    The first stock market was invented in the 1300s when merchants of Venice began to trade securities received from other governments, according to Investopedia. This was done via slates with information on things for sale, which were carried to meetings with the merchant's clients.

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    What are stocks and bonds?

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