Tombstone (financial industry)

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Tombstone ads are most often used in the financial industry, where a particular transaction (such as an offering or placement of stock of a company) is formally announced, in a form that discloses the participants in a specified order according to their role in underwriting or brokering the transaction. (See bulge bracket.) In the United States, securities regulations require that most such advertising be in tombstone form, in order to prevent the advertisement from being perceived as a promotion of the particular stock issue involved.

A Tombstone Ad is simply an announcement (not an offer) of a new security for sale. This advertisement is the only one allowed during the "cooling-off period."