Tombstone Ad

A tombstone ad generally refers to an ad about a securities offering and historically referred to an ad that was published in a newspaper that appeared in black and white, in a simple box, with just text, describing the principal details of the offering. In more recent times, a tombstone ad may reference a limited communication not considered an “offer” that is made in compliance with Securities Act Rule 134 and is made only after a statutory prospectus is available. A Rule 134 tombstone announcement will contain basic facts about the issuer, its business, the offered securities, the participating underwriters, the timing of the offering, and necessary legends.