Tombstone

Key Highlights

• A tombstone is a formal announcement in the financial world, like an ad in a newspaper or online, that shares the key details of a big financial deal- like a company going public (IPO), issuing bonds, or a merger.

• It’s not about selling or hyping up the deal; it just lays out the basic facts for potential investors.

What is Tombstone?

A tombstone is a formal announcement in the financial world, like an ad in a newspaper or online, that shares the key details of a big financial deal—like a company going public (IPO), issuing bonds, or a merger. It’s not about selling or hyping up the deal; it just lays out the basic facts for potential investors.

Key Features

• Purpose: To publicly announce the availability of securities for sale and provide basic details about the offering.

• Content: Typically includes the name of the issuer, type and number of securities offered, offering price or price range, date of availability, and the names of the underwriting syndicate members arranged by their role and participation level.

• Format: Usually a simple, black-and-white print advertisement with centered text and a distinctive black border, which gives it the name "tombstone" due to its resemblance to a gravestone marker.

• Regulatory Requirement: The Securities and Exchange Commission (SEC) requires tombstone advertisements as part of disclosure rules for public offerings to ensure transparency and inform investors.