The Internet has had a tremendous impact on the securities industry—it has spawned online brokerages, has emerged as the primary source of information for investors, and is the means by which businesses can distribute prospectuses, financial statements, news releases, and the like. It also poses considerable challenges as its global, invisible nature increases the likelihood of fraud. Because scam artists can anonymously and cheaply communicate with a vast number of people, they can readily spread rumours that result in the manipulation of market prices, trade in securities without being registered to do so, and distribute securities in nonexistent entities. What is the rationale for regulating trade in securities? Do you think the rationale changes when the commercial activity is conducted over the Internet?