Series 24: 3.6.9.2. Investment Company Tombstone Ads

Taken from our Series 24 Online Guide

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

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