49 Am. U. L. Rev. 1089 (1999-2000)
Online Trading and the National Association of Securities Dealers' Suitability Rule: Are Online Investors Adequately Protected

handle is hein.journals/aulr49 and id is 1105 raw text is: COMMENTS

ONLINE TRADING AND THE NATIONAL
ASSOCIATION OF SECURITIES DEALERS'
SUITABILITY RULE: ARE ONLINE
INVESTORS ADEQUATELY PROTECTED?
RENEE BARNETT*
TABLE OF CONTENTS
Introduction  ...................................................................................... 1090
I. Background of Online Trading and Suitability Obligations 1095
A. The Explosive Growth of Online Trading ...................... 1095
B. Online Trading versus Day-Trading: Distinguishing
Betveen Two Different Types of Investment Activities. 1098
C. Suitability Obligations Under NASD and NYSE Rules .. 1100
D. Suitability   Doctrine   Enforcement     Mechanisms:
Arbitration's Affect on Consumer Protection ................ 1103
E.  Online  Suitability ............................................................. 1106
II. Online Brokers and Suitability Obligations: Is There a
Need for Regulators to do More to Protect Online
Investors? ................................................................................. 1106
A. The Type of Investor that Online Trading Attracts ....... 1108
B. Online Brokers' Aggressive Advertising Campaigns ...... 1110
C. Online Brokers' Websites: What Should Constitute a
Recommendation Under NASD 2310? ........................... 1113
D. Personalized Investment Research ................................. 1116
Senior Note and Comment Editor, American University Law Review, Volume
50; J.D. Candidate, May 2001, American University, Washington College of Lau, B.S.,
1998, Wake Forest University, cum laude Special thanks to my parents, Evan andJoanne
Barnett, and to Mike Bomba for their love and encouragement. I would like to
thank my friends and the staff of the American University Law Review for their support.
I am also grateful to Professor Mary Siegel for her help on later drafts.

1089

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