Corporate web site disclosure and rule 10b-5: An empirical evaluation

American Business Law Journal

Volumn 36, Issue 4, 1999, Pages 531-578

  Prentice, Roberta ^a   Richardson, Vernon J ^b   Scholz, Susan ^b  

^a UNIVERSITY OF TEXAS   (United States)

^b UNIVERSITY OF KANSAS   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 17144382155     PISSN: 00027766     EISSN: None     Source Type: Journal    
DOI: 10.1111/j.1744-1714.1999.tb00263.x     Document Type: Article

References (10)

1. SEC Chairman Levitt recently noted that "[flew sectors of our economy use technology in more sophisticated ways than the securities industry." Arthur Levitt, Corporate Finance in the Information Age, in SECURITIES LAW & THE INTERNET 142 (1998). And not long ago, SEC Commissioner Wallman predicted that "[t]echnology-initiated change will come, it will come quickly, and it will have dramatic effects on the securities industry." Steven M.H.Wallman, Regulation for a New World, BUS. L. TODAY, Nov./Dec. 1996, at 8, 10.
2. SEC Chairman Levitt recently noted that "[flew sectors of our economy use technology in more sophisticated ways than the securities industry." Arthur Levitt, Corporate Finance in the Information Age, in SECURITIES LAW & THE INTERNET 142 (1998). And not long ago, SEC Commissioner Wallman predicted that "[t]echnology-initiated change will come, it will come quickly, and it will have dramatic effects on the securities industry." Steven M.H.Wallman, Regulation for a New World, BUS. L. TODAY, Nov./Dec. 1996, at 8, 10.
3. day by mid-1998. See Rebecca Buckman, Online Trading Holds Up in Downturn In Market, but Growth May Be Slowing, WALL ST. J., Oct. 22, 1998, at C1 (citing numbers provided by Credit Suisse First Boston). Just between September and mid-December of 1998, such trades jumped again to 350,000 per day. See Online Trading Increases 30% Since September, AUSTIN AM.-STATESMAN, Dec. 19, 1998, at G1. Approximately three million investors now have on-line brokerage accounts. See Amy Harmon, Have Laptop, Will Track Each Blip in the Market, N.Y. TIMES, Sept. 6, 1998, at BU7. Competition has caused online trading commissions to drop like a stone. See Suzanne Woolley, Do I Hear Two Bits a Trade?, BUS. WK., Dec. 8, 1997, at 112.
4. day by mid-1998. See Rebecca Buckman, Online Trading Holds Up in Downturn In Market, but Growth May Be Slowing, WALL ST. J., Oct. 22, 1998, at C1 (citing numbers provided by Credit Suisse First Boston). Just between September and mid-December of 1998, such trades jumped again to 350,000 per day. See Online Trading Increases 30% Since September, AUSTIN AM.-STATESMAN, Dec. 19, 1998, at G1. Approximately three million investors now have on-line brokerage accounts. See Amy Harmon, Have Laptop, Will Track Each Blip in the Market, N.Y. TIMES, Sept. 6, 1998, at BU7. Competition has caused online trading commissions to drop like a stone. See Suzanne Woolley, Do I Hear Two Bits a Trade?, BUS. WK., Dec. 8, 1997, at 112.
5. day by mid-1998. See Rebecca Buckman, Online Trading Holds Up in Downturn In Market, but Growth May Be Slowing, WALL ST. J., Oct. 22, 1998, at C1 (citing numbers provided by Credit Suisse First Boston). Just between September and mid-December of 1998, such trades jumped again to 350,000 per day. See Online Trading Increases 30% Since September, AUSTIN AM.-STATESMAN, Dec. 19, 1998, at G1. Approximately three million investors now have on-line brokerage accounts. See Amy Harmon, Have Laptop, Will Track Each Blip in the Market, N.Y. TIMES, Sept. 6, 1998, at BU7. Competition has caused online trading commissions to drop like a stone. See Suzanne Woolley, Do I Hear Two Bits a Trade?, BUS. WK., Dec. 8, 1997, at 112.
6. day by mid-1998. See Rebecca Buckman, Online Trading Holds Up in Downturn In Market, but Growth May Be Slowing, WALL ST. J., Oct. 22, 1998, at C1 (citing numbers provided by Credit Suisse First Boston). Just between September and mid-December of 1998, such trades jumped again to 350,000 per day. See Online Trading Increases 30% Since September, AUSTIN AM.-STATESMAN, Dec. 19, 1998, at G1. Approximately three million investors now have on-line brokerage accounts. See Amy Harmon, Have Laptop, Will Track Each Blip in the Market, N.Y. TIMES, Sept. 6, 1998, at BU7. Competition has caused online trading commissions to drop like a stone. See Suzanne Woolley, Do I Hear Two Bits a Trade?, BUS. WK., Dec. 8, 1997, at 112.
7. Second, alternative electronic trading systems now handle approximately 20% of NASDAQ's volume and 4% of the NYSE's volume, again up from zero just a few years ago. See Rebecca Buckman, On-Line Firms Study Network For Trading, WALL ST. J., Aug. 20, 1998, at C1, C15.
8. Third, in 1996, there were only about 20 on-line brokerage firms. That number is now over 80. See Rebecca Buckman, Comparison Shopping, WALL ST. J., Sept. 8, 1998, at R8. Surprisingly, the stock value of online specialist Charles Schwab Corp. passed that of Merrill Lynch & Co. in late 1998.
9. See Rebecca Buckman, Milestones Hit by Schwab And E*Trade, WALL ST. J., Dec. 29, 1998, at C1 (noting also that on-line broker E*Trade had more than 540,000 paying customers).
10. Fourth, the volume of Internet investing has forced traditional brokerage firms like Merrill Lynch & Co. to eat their anti-Internet rhetoric and set up their own online service offerings. See Rebecca Buckman, More Old-Line Brokers Test Waters Online, WALL ST. J., Jan. 6, 1999, at C1.