Use of the Internet for Securities Offerings

The LawHost Online Law Journal

USE OF THE INTERNET FOR SECURITIES OFFERINGS,
WEB-BASED SECURITIES EXCHANGES, AND
ELECTRONIC DISCLOSURE DISSEMINATION

By Lola Miranda Hale, partner at McBride Baker and Coles, Chicago, e-mail at hale@mbc.com

I. Introduction

See Text

A. Scope of Chapter

B. Direct Public Offerings

C. Recent Developments Relating to the Internet and the Securities Regulatory Framework

II. SEC Guidance on Use of Electronic MediaSee Text

A. Notice That Information Is Electronically Available

B. Access

1. Practical Accessibility
2. Duration of Availability
3. Availability of Paper Copies

C. Evidence of Delivery

1. Informed Consent
2. Actual Evidence of Delivery

D. Confidentiality and Security

E. Non-Required Disclosure

III. Internet Secondary Trading/Matching ServicesSee Text

A. In General

B. Passive Internet Bulletin Board Trading Systems

1. Real Goods Trading System
2. The PerfectData Trading System
a. Broker-Dealer and Exchange Issues
b. Investment Adviser Issue

3. Spring Street Brewing Company

IV. Unregistered Offerings and the InternetSee Text

V. Impact of Blue Sky LawsSee Text

A. State Law Exemptions for Internet Offerings

B. State Law Coordination with Regulation A

C. SCOR

The information offered here is not intended as legal advice or opinion applicable in specific circumstances. You are urged to consult an attorney concerning your particular situation. Under professional rules, this article may be regarded as advertising material.

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