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The Use of the Internet to Trade and Underwrite Securities

Question 16

Multiple Choice

The use of the Internet to trade and underwrite securities


A) is illegal under OSC regulations
B) is regulated by the Toronto Stock Exchange
C) is expected to grow quickly
D) increases underwriting costs for a new security issue
E) is regulated by the National Association of Securities Dealers
The OSC permits trading and underwriting of securities over the Internet,but has required firms participating in this activity to take steps to safeguard investment funds.This form of underwriting is expected to grow quickly due to its lower cost.It is not regulated by either the NYSE or the NASD.

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