Tombstone (financial industry)
A tombstone is a type of print notice that is most often used in the financial industry to formally announce a particular transaction, such as an initial public offering or placement of stock of a company. This is done in a form that discloses the participants in a specified order according to their role in underwriting or brokering the transaction. The name comes from the type of advertisement used, a 'tombstone ad', so called because the simple, centered text style with large amounts of whitespace and few if any images or other adornments make them resemble tombstones. [1]
The first lucite deal toy was created in the 70's incorporating a document or "tombstone" embedded into Lucite.[citation needed] There are three major manufacturers in the US although many smaller companies do not have the capability of the larger manufacturers. Lucite tombstones are the common name for lucite embedments, lucite awards, and "deal toys".[2]
Among financial firms, and more specifically, the investment banking community, the term “tombstone” has come to be used as shorthand for “Lucite tombstone” or “deal tombstone”, also commonly known as a “deal toy”.[3]
Throughout the 1980’s and 90’s tombstones became a fixture within the culture of investment banks, both as a means of recognizing the work of its own employees in successfully completing a transaction, and more importantly, and as a branding tool among the bank’s clients.[4]
The banking crisis of 2008 caused many financial firms to reign in spending generally, and on deal toys specifically.[4] Though many financial firms have recently eased restrictions on tombstone budgets, they largely have not been restored to pre-crisis levels. Average order size, which had ranged between 50-60 pieces prior to 2008, had by 2013 stabilized at around 20-30. Order quantities can still reach approximately 50 or 60 for larger transactions.[4] For certain landmark transactions, tombstone quantities can be even higher. The tombstone order commemorating Facebook’s initial public offering, designed by New York-based firm The Corporate Presence, numbered in the “hundreds”.[5]
References
- ↑ Melicher, Ronald; Norton, Edgar. Introduction to Finance: Markets, Investments, and Financial Management. New York: John Wiley & Sons. p. 18.
- ↑ "Lucite monuments pop up to mark increase in mergers, acquisitions", Thor Valdmanis, [USA TODAY] Published: February 16 2004.
- ↑ "Another Wall Street Casualty: The Art of the ‘Deal Toy’", Ianthe Jeanne Dugan. Published: February 11, 2009.The Wall Street Journal
- ↑ 4.0 4.1 4.2 "Wall Street ‘Deal Toy’ Indicator Flashes a Bullish Sign", Katie Little. Published: March 5, 2013.CNBC
- ↑ "Congrats on Your Mega-Deal", Rob Walker. Published: May 27, 2013.The New Republic
The first lucite deal toy was created in the 70's incorporating a document or "tombstone" embedded into Lucite.[citation needed] There are three major manufacturers in the US although many smaller companies do not have the capability of the larger manufacturers. Lucite tombstones are the common name for lucite embedments, lucite awards, and "deal toys".[1]
References
- ↑ "Lucite monuments pop up to mark increase in mergers, acquisitions", Thor Valdmanis, [USA TODAY] Published: February 16 2004.