How do you get a Medallion signature guarantee?


Quick Answer

To obtain Medallion signature guarantee, become a client of a financial institution that subscribes to one of the Medallion signature guarantee programs, and then request for the guarantee from the institution, according to Investopedia. The institution may charge a fee for providing the Medallion signature guarantee.

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Full Answer

A Medallion signature guarantee refers to a special certification stamp that acts as an assurance that the signature used to authorize the security transfer is valid, as explained by Investopedia. In most cases, this signature guarantee becomes a necessity when a person intends to transfer or sell his securities to another person. Such securities may be bonds or stocks whose ownership is held in a tangible certificate form. By contrast, the transfer of securities held through a broker do not call for a Medallion signature guarantee for their transfer to be effected.

There are three Medallion signature guarantee programs that guarantee the authenticity of a signature: the Stoke Exchanges Medallion Program, the Securities Transfer Agents Medallion program and the New York Stock Exchange Medallion Signature Program, as reported by Investopedia. If a financial organization becomes a member to any of the three programs, such an organization qualifies to offer a Medallion signature guarantee to its respective clients.

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