3.6.9.2. Investment Company Tombstone Ads
The SEC does allow communications/advertisements about the new offering 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 administr