What type of advertisement can an underwriter issue during a cooling-off period?

During a cooling-off period, an underwriter can issue a tombstone advertisement. A tombstone ad is a specific type of advertisement used in the financial industry that provides basic information about a new issue of securities. It typically includes the name of the issuer, the type of security being offered, the price, and a brief description of the issue, along with contact information for interested investors to obtain more details.

This type of advertisement is allowed during the cooling-off period because it does not constitute a promotional or persuasive advertisement. It simply presents factual information without offering a specific recommendation or urging investors to buy the securities, which aligns with the regulatory requirements to prevent misleading or promotional practices during this sensitive period of the security offering process. The focus here is strictly on disclosing information rather than promoting the investment, which is crucial for maintaining fairness and transparency in the market while awaiting regulatory approval.