9.1.2.2. Investment Company Tombstone Ads
The SEC does allow communications/advertisements that include only general information about the offering. Often, this information is presented in a tombstone ad, which is a very basic advertisement that investment bankers place in a newspaper or financial magazine to announce a new securities offer.
Unlike generic advertisements, tombstone advertisements may contain a solicitation for the sale of particular securities. However, they may only be published after an issuer has filed a registration statement that includes a prospectus.
An investment company tombstone ad may not incorporate a fund’s performance data. The information a tombstone ad may convey includes the following items:
•Factual information about the legal identity and business location of the issuer
•The title of the securities and the amounts being offered
•A brief indication of the general type of business of the issuer
•The price of the security, if known, or the method for its determination
•A brief description of the intended use of the offering’s proceeds
•The name, address, phone number, and e-mail address of the sender
•The type of underwriting and the identities of the underwriters
•The anticipated schedule for the offering
•A description of the procedures by which the underwriters will conduct the offering
•Whether the security is exempt from specified taxes
•Any legend required by any state law or administrative authori