Question

SwissAire, Inc. has filed a registration statement with the SEC for a public offering of common stock. The registration statement was completed on November 30, 1999, and filed on December 1, 1999. The statement became effective on December 30, 1999. Shares were first sold on December 31, 1999. When can SwissAire first run a tombstone ad?a. December 1, 1999b. December 31, 1999c. November 30, 1999d. December 30, 1999

Answer 1

Answer:

a. December 1, 1999            

Explanation:

             A tombstone ad is an advertisement in the print form that can be appeared or advertised in a newspaper or a magazine. It is mostly used by any financial company or a firm where it is used publicly to share or express a transaction or a public offering of a stock of the company.

           When any company registers a statement with the United States Securities and Exchange Commission for the public offering of a stock of the company, both 'tombstone ads' and 'red herring' can be expressed before the registration statement becomes effective.

            In the question, SwissAire registration statement became effective on  December 30, 1999.

             Therefore the tombstone ad can be  expressed before December 30, 1999 and after the registration and filing has been completed on December 1, 1999.

Therefore the answer is ---

a. December 1, 1999