Medallion Stamp Guarantee

Medallion Stamp Guarantee refers to a special signature guarantee used in the United States to authenticate the signature of a Shareholder/">Shareholder or account holder when transferring Securities. This guarantee is provided by Financial Institutions, such as banks or brokerage firms, and is meant to protect against unauthorized transactions. The Medallion Stamp itself is a secure stamp that contains specific information about the guarantor and is recognized by clearinghouses.

For example, if an individual wishes to transfer Stocks from their account to another person, they may need to provide a Medallion Stamp Guarantee on the transfer form. This ensures that the transfer is legitimate and that the Financial Institution has verified the identity of the person signing the document.

In a case where an investor sells Shares of Stock and the buyer requires a Medallion Stamp Guarantee, the seller must visit their bank or brokerage firm to obtain the stamp before the transaction can be completed. If the bank does not provide this guarantee, the transaction may not proceed, as it helps prevent fraud and ensures that the person selling the Shares has the authority to do so.