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A medallion signature guarantee is a special certification stamp that guarantees a signature that authorizes a transfer of securities. A medallion signature guarantee is required when an owner wants to sell or transfer securities, such as stocks or bonds, to another individual or entity. The Medallion stamp with signature by a financial institution is a guarantee that the signature is valid, that the signer legally own the assets that are being transferred, and the financial institution accepts liability in case of forgery. The medallion Guarantee helps protect all parties involved in the transfer of securities.

Typically, a Medallion Signature Guarantee can be obtained from a financial institution. Most commercial banks, savings banks, credit unions, and broker dealers that participate in a Medallion Guarantee program will offer this service.