Q:

What is a medallion seal?

A:

Quick Answer

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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What is a medallion seal?
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Full Answer

A medallion signature guarantee is required in certain transactions involving securities. It protects against forgeries. When a qualified employee of a financial institution makes a medallion signature guarantee attesting to the identity of the person making the signature, that financial institution becomes liable for any losses suffered if it turns out the guaranteed signature was forged.

A medallion signature guarantee is often confused with the functions performed by a notary public. A medallion signature guarantee is completely different from notarization. A notary public is licensed by the state. Unless the notary public is also a qualified employee of a financial institution in the SEC's Medallion Signature Guarantee program, then the notary public cannot provide a medallion signature guarantee.

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Related Questions

  • Q:

    What is a Medallion signature?

    A:

    A Medallion signature is the guaranteed signature required before an owner of securities in the form of a physical certificate can sell or transfer them. The process of getting a Medallion signature helps to keep securities safe from being transferred illegitimately with a forged signature.

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  • Q:

    What is a gold medallion signature guarantee?

    A:

    A medallion signature guarantee, sometimes referred to as a gold medallion notarization, is a special signature guarantee required for the sale or transfer of securities. It is the issuing financial institution’s certification that a signature related to the sale or transfer is authentic, according to the American Society of Notaries.

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    What is a Medallion Signature Guarantee?

    A:

    A Medallion Signature Guarantee is a certification stamp issued by a financial institution required when the owner of securities in physical form wants to sell or exchange them. Banks, credit unions and brokers can guarantee a signature as a safeguard from fraudulent activity and sometimes charge a small fee for the service, according to the United States Securities and Exchange Commission.

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  • Q:

    How do I get a Medallion signature guarantee?

    A:

    In the United States, a Medallion signature guarantee can be obtained from a bank, credit union or financial institution that is part of the Securities Transfer Association Medallion Program or the NYSE Medallion Signature Program. A notary public cannot provide this service.

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