Types of Signature Guarantee

There are three main programs for signature guarantees.  Each signature guarantee is primarily established to facilitate the transfer of securities from one institution to another.  The three main programs for getting a medallion signature guarantee are:

  1. Stock Exchanges Medallion Program
  2. Securities Transfer Agent Medallion Program
  3. New York Stock Exchange Medallion Signature Program
The signature medallion stamp is used by various institutions.  Without a medallion guarantee, the transfer of securities would be much more cumbersome and even impossible in many instances. 
The medallion allows one institution to transfer securities to another party.  Signature guarantees are usually used to reduce liability between institutions when transferring securities.  A signature guarantee can also be used for verification in more complicated account maintenance transactions, such as transferring ownership of an account or designating trading authority to a new person or entity.  Speak with a representative at your banking institution for complete details on when a signature guarantee is necessary and how it is to be used.

Detailed information can be found on the SEC signature guarantee website.