The article cited below is a straightforward discussion of what it means to trade online. Cales Investments agrees that the Internet brings new challenges and responsibilities to both traders and brokers. We urge our clients to take time to read the Chairman Levitt's comments in full, and to fully "understand and control the level of risk he or she is assuming" when engaging in any trading activity, whether it is online or through your broker.
Securities Exchange Commission
In a speech by SEC Chairman Arthur Levitt at the National Press Club: Plain Talk About On-Line Investing (May 4, 1999), the Chairman stated:The breadth and pace of change prompted by the Internet are phenomenal. But, while it changes the way millions of Americans invest, on-line investing does not alter the basic framework that has governed our markets for the past 65 years.
The laws regulating our markets are a product of the New Deal era. To me, their concepts are as indelible as the Constitution. They have weathered challenge after challenge, decade after decade, and are every bit as relevant and effective today as they were the day they were written. Companies offering their shares -- whether off a website or through a paper prospectus -- still have to disclose what they are selling and why. Brokers -- whether traditional or on-line -- still have the same obligations to their customers. And fraud -- whether perpetrated over the Internet, on the phone, or in-person -- is still fraud.