in this type of investment activity." Considerable Disclosure: A few firms distributed documents containing risk disclosures that were either the same as or similar to those contained in the proposed NASD rule and suggested by the ETA. These firms also required the investor to acknowledge receipt by signing the document. For example: One firm required customers to sign three documents prior to opening an account. The first, the account application, disclosed the amount and types of risk that day trading poses. The second document, the firm's risk disclosure statement, contained risk items similar to those in the proposed NASD rule. The third document, a form that the customer was required to sign to receive a demonstration of day trading, stated that "the demonstration provides the trader with nothing more than an opportunity to sample the trading software. The trading results achieved during the demonstration are in no way representative of the results the demo trader may achieve while actually trading live." A February 2000 review of seven large day-trading firms indicated that all firms provided significant risk disclosures to potential customers concerning the risks of day trading. Each of these firms provided documents to potential customers that include the NASD's proposed risk disclosure statements or their own statements with similar disclosures. These findings demonstrate the importance of the SEC's examinations and public education initiative regarding the risks of day trading. As noted, some firms are providing the type of disclosures detailed in the NASD rule proposal. The Staff also recommends