Securities Law in the Internet Age: Is ‘Regulating by Analogy’ the Right Approach?

Securities regulation relating to the Internet calls on issuers to ensure that an electronic document being delivered to shareholders or investors conforms to existing rules. As the Internet becomes increasingly accessible, should the dominant approach to securities regulation give way to a new approach that recognizes the technological advantages of the Internet? The author argues that the current "paper-based" approach to the disclosure of information is incompatible with the reality of communication in cyberspace. The present regime excessively limits the effectiveness of "webversions" of a document, which may include hyperlinks and multimedia applications. The author reevaluates current law and suggests the adoption of an "Internet Initiative" to account for recent developments in information technology