SIE practice questioneasyTombstone Ad
A tombstone advertisement for a new securities offering is permitted during the cooling-off period and typically includes all of the following EXCEPT:
- AA recommendation to buy the security✓ Correct answer
- BThe name of the managing underwriter
- CThe type of security being offered
- DThe name of the issuer
Explanation
Why A — A recommendation to buy the security
A tombstone ad is a limited advertisement permitted during the cooling-off period that states basic facts: the issuer's name, the type of security, the offering size, and where to obtain a prospectus. It may NOT include a recommendation to buy, a buy/sell opinion, or any language that could be considered a solicitation. The name 'tombstone' comes from its plain, factual, black-bordered format. It is not considered an offer to sell.
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