Medallion Signature Guarantees: What They Are and How to Use Them
What is a Medallion Signature Guarantee?
A Medallion Signature Guarantee (MSG) is a special certification stamp that guarantees the authenticity of a signature on a stock certificate or other security. It is used to protect against fraud and to ensure that the person selling or transferring the security is the rightful owner.
How Does a Medallion Signature Guarantee Work?
To obtain a Medallion Signature Guarantee, you must present the security and a valid form of identification to a bank or other authorized agent. The agent will then compare your signature to the one on file and, if they match, they will affix the Medallion Signature Guarantee stamp to the security. This stamp guarantees that the signature is genuine and that the person signing the security is the rightful owner.
When is a Medallion Signature Guarantee Required?
A Medallion Signature Guarantee is required whenever you sell or transfer a security that is in paper form. This includes stocks, bonds, and mutual funds. It is not required for securities that are held in electronic form.
How to Find a Medallion Signature Guarantee Agent
There are many banks and other institutions that offer Medallion Signature Guarantee services. You can find a list of authorized agents on the website of the Securities and Exchange Commission (SEC). You can also ask your financial advisor for a recommendation.
Conclusion
Medallion Signature Guarantees are an important tool for protecting against fraud and ensuring the authenticity of signatures on securities. If you are selling or transferring a security that is in paper form, you will need to obtain a Medallion Signature Guarantee from an authorized agent.
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