SEC Rule 134 allows certain types of advertisements to be run relating to a new issue. Tombstone ads are the only form of advertising that is allowed during the cooling off period. A tombstone ad is an announcement and description of the securities to be offered. A tombstone ad lists the names of the underwriters, where a prospectus may be obtained, and a statement that the tombstone ad does not constitute an offer to sell the securities and that the offer may only be made by a prospectus. Tombstone ads are traditionally run to announce the new issue, but they are not required and do not need to be filed with the SEC. Tombstone ads may also include:

  • The amount of the security to be offered
  • The date of sale
  • A general description of the issuer’s business
  • The price of the security

Need Help Passing Your Series 57 Exam?



Free Riding And Withholding / FINRA Rule 5130

Related Articles
  1. Insurance

    Haunting Wall Street: The Halloween Terminology Of Investing

    Beware of zombies and Jekyll and Hyde companies! Read about the spooky terms circulating Wall Street.
  2. Investing

    What's a Prospectus?

    The Security and Exchange Commission (SEC) requires that any company raising money from potential investors through the sale of securities must file a prospectus with the SEC and then provide ...
  3. Investing

    The Road To Creating An IPO

    Through an Initial Public Offering, or IPO, a company raises capital by issuing shares of stock, or equity in a public market. Generally, this refers to when a company issues stock for the first ...
  4. Small Business

    How is Programmatic Advertising Changing Media?

    Understand what programmatic advertising is as well as the technology that drives it. Learn about the top four ways programmatic advertising is changing media.
  5. Small Business

    Trends And Growth In The Digital Advertising Industry

    The rapidly expanding digital advertising industry is leading a shift towards content and demanding forced innovation.
  6. Financial Advisor

    Ad Blockers Could Spell A Boom For Publishers  

    In a free content world, largely subsidized by advertising, ad blockers can eat into publishing revenues. But, publishers can still stand to gain.
  7. Insights

    How the TV Advertising Industry Works

    Things have definitely changed since the early days of “Mad Men,” when one TV ad could change the world—or at least change a company’s sales numbers.
  8. Small Business

    Advertising From TV To Internet: An Industry History

    Changes in television consumption habits have forced advertising to target audiences through new means, namely Internet advertising.
  9. Investing

    Verizon, AT&T Added to List of Companies Suspending Google Advertising

    The company changed its ad policies after several advertisers pulled their ads off its network.
  10. Investing

    Snap Rolls Out Mobile Ad Tool Aimed at Facebook

    Snap takes on Facebook in mobile ads, rolling out the ability for advertisers to target users.
Frequently Asked Questions
  1. How do you calculate r-squared in Excel?

    Calculate R-squared in Microsoft Excel by creating two data ranges to correlate. Use the Correlation formula to correlate ...
  2. What is the Difference Between International Monetary Fund and the World Bank?

    Learn about the International Monetary Fund and the World Bank and how they are differentiated by their respective functions ...
  3. Where Did the Bull and Bear Market Get Their Names?

    The terms bull and bear are used to describe general actions and attitudes, or sentiment, either of an individual (bear and ...
  4. What's the difference between Google's GOOG and GOOGL stock tickers?

    Learn the difference between Google's GOOG and GOOGL ticker symbols. Splitting shares into classes prevents management from ...
Trading Center