Q:

What is a medallion stamp?

A:

Quick Answer

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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Full Answer

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:

    What is a medallion signature guarantee STAMP?

    A:

    According to the U.S. Securities and Exchange Commission, STAMP stands for Securities Transfer Agent Medallion Program. A Medallion signature guarantee STAMP is used to verify the signature on a security's certificate in order to foil fraud attempts. This guarantee is offered by financial institutions throughout the United States and Canada.

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  • 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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  • Q:

    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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  • Q:

    Is Ally Bank safe?

    A:

    Ally Bank is a member of the FDIC and regulated as any other domestic bank, making Ally a safe organization for financial transactions. Ally Bank is an online bank, so it has no physical locations for customers to visit for banking activities.

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