Road Shows on the Internet: Taking Individual Investors for a Ride on the Information Highway

The Internet has prompted an evolution (indeed, a revolution) within securities transactions that has markedly changed the face of securities regulation. The ubiquitous nature of this information network has caused deviations from and alterations within the traditional business model. These changes, many of which are ongoing, include a movement toward a different type of public offering as well as a reassessment and redistribution of risk for market players. Consequently, the Securities and Exchange Commission (SEC or Commission) has been forced to reevaluate some of its rules and regulations. In particular, the SEC has had to learn how to utilize Internet resources without compromising either of its dual objectives of promoting market efficiency and protecting investors.' As a result, the SEC is now fighting a battle on two fronts. On the one hand, the Commission is battling broker-dealers, who feel that the SEC's attempts to "level the playing field" by imposing strict regulations on information disclosure is too stringent and is actually hampering market efficiency.2 On the other hand, the SEC is at odds with investors, who feel that the SEC's paternalistic approach is suffocating them in