Capital MarketsQuestion 307 of 398
What is a tombstone advertisement?
a.A limited announcement of a securities offering that provides basic facts and directs investors to the prospectus
b.A detailed legal document containing all material information about an issuer
c.A notice that a company has defaulted on its bonds
d.A confidential memo circulated only among syndicate members
Explanation
A tombstone is a brief, permitted advertisement that announces a new offering and provides basic details such as the issuer, size, and underwriters. It is not a selling document; it directs interested investors to obtain the prospectus for complete information.
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