Online Financial Information: Law and Technological Change*

Two contrasting narratives about the impact of the Internet on investors point to different responses by regulators: a narrative of empowerment suggests that regulators should encourage investors to make investment decisions for themselves. But a narrative of vulnerability suggests that these investors may not be able to use the information that is available, and may be at increased risk of loss. Regulators should aim to promote investor empowerment while taking due account of investor vulnerabilities. Three characteristics (immediacy, interactivity, and interjurisdictionality) distinguish online investment information from offline investment information and have implications for the regulation of online information