Medallion Stamp Program

Medallion Stamp Program

A program approved by the Securities Transfer Association that enables participating financial_institutions to guarantee signatures. The Medallion programs ensure that the individual signing the certificate or stock, power is in fact the registered owner as it appears on the stock certificate or stock power. Any U.S. financial institution that belongs to a Medallion Stamp Program can provide Medallion guarantees. Such institutions include banks, savings and loans, credit unions and U.S. brokerages.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Medallion Signature Guarantee

In securities transactions, a guarantee by members of the Medallion Program that the signature(s) of the seller of a security is in fact the signature of the person(s) authorized to sell that security. The guarantee is backed up by an insurance policy and protects the buyer from any financial loss as the result of securities fraud. It reduces risk to buyers and allows securities transactions to be processed immediately. The guarantor is a bank or other member firm of the Securities Transfer Association.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved