What does the term "tombstone ad" refer to in the context of new issues?

The term "tombstone ad" specifically refers to a type of advertisement used in the context of new security issues. These advertisements are typically concise notifications that provide essential details about a new security offering, such as the issuer, the type of security being offered, the price range, and the underwriting firms involved. Tombstone ads are straightforward and designed to communicate basic information to potential investors without promotional language, serving an educational purpose rather than a persuasive one.

This type of advertisement is regulated to ensure compliance with securities laws, and it is usually displayed in financial publications as part of the effort to inform the public about upcoming securities offerings. The clarity and simplicity of tombstone ads distinguish them from other forms of advertising, which may be more elaborate or sales-oriented.