Medallion Signature Guarantee(redirected from New York Stock Exchange Medallion Signature Program)
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