Q:

What is a medallion stamp?

A:

The Medallion stamp is a form of signature guarantee used in financial transactions. It is an extra layer of authenticity and protection against forged signatures.

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A Medallion stamp is most likely to be required when selling or trading securities. To transfer a securities certificate, it needs to be signed over to the new owner, similar to a car title. After it is signed, a financial institution that participates in the Medallion program authenticates the signature and places a stamp with special security features on the certificate. A signature guarantee limits the potential liability and losses of the receiving party if the signature is forged.

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Related Questions

  • Q:

    Where can I obtain a medallion guarantee stamp?

    A:

    There are a few different places where a person can obtain a medallion guarantee stamp, including domestic banks, trust companies, clearing agencies and savings associations. The financial institution must participate in a medallion program of the Securities Transfer Association or the New York Stock Exchange.

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    What is a medallion seal?

    A:

    A medallion seal is an imprint stamped on a document by a qualified employee of a financial institution that guarantees that the signature above the seal is authentic. This guarantee is made under the Medallion Signature Guarantee program, which is overseen by the SEC.

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    What is stock acquisition non-open market?

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    According to Investopedia, "stock acquisition non-open market" means that shares are either bought or sold directly to and from a company. These transactions are strictly private.

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    What are some advantages and disadvantages of the BCG matrix?

    A:

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