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.

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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