Tombstone is an announcement published in financial papers, advertising the offering of securities by a group of underwriters. Only basic information may be contained in the tombstone ad and all offers must be made through the prospectus only.
Applying "Tombstone" to Securities Exams:
When a group of underwriters is offering securities for sales for an issuer, the syndicate will announce the offering in the papers by way of a tombstone ad. The tombstone will provide a description of the securities, the names of the underwriters and where a prospectus may be obtained.