What is a “tombstone ad”?

A "tombstone ad" refers to a public announcement of a new issue in financial publications, specifically regarding securities such as stocks or bonds. These advertisements typically provide essential information about the offering, including the name of the issuing company, the type of security being offered, the amount of the offering, and the lead underwriters involved in the transaction. Tombstone ads serve as a communication tool to inform potential investors about the availability of new investment opportunities and are a key component of the capital-raising process.

This type of advertisement is designed to provide transparency to the public and is often used to attract interest from potential investors. The simplicity and straightforwardness of the information presented make tombstone ads easily recognizable and invaluable for those following capital markets. In contrast, the other options either refer to unrelated types of advertising or documentation, thus distinguishing the unique role that tombstone ads play within the finance and investment community.