The Internet has greatly facilitated the ease and speed with which securities transactions can occur. The URL below will take you to a page on the Securities and Exchange Commissions (SECs) Web site that presents interpretive guidelines issued by the SEC on the use of electronic media in transactions governed by federal securities laws.

Answer the following questions. (each question is worth 15 points).

a. Scroll down to the "Introduction" section of the above link. How many people invest in the U.S. securities markets through online brokerage accounts today? Generally, how has the availability of Internet communications affected the securities industry?

b. According to the SEC, how will its interpretive guidelines, or guidance, facilitate the electronic delivery of communications? How will they reduce the uncertainty regarding permissible Web site content, thus encouraging more widespread information dissemination to investors? How will the guidelines facilitate online offering?