It is my hope that the Commission will find a way to allow companies and investors to take greater advantage of the Internet and thus, as I have said previously, transform the waiting period into the education period. I am almost certain that some companies would attempt to turn the waiting period into marketing campaigns that would rival Superbowl Sunday's commercials and the Cola wars. There likely will be television ads, and radio spots, and I would not even be surprised to see some companies attempt to hawk their stock on Leno or Letterman. Some will argue that the opening of communications will further supplant the need for a preliminary prospectus. Even today, many have argued that the prospectus has become obsolete.
Information is everywhere.
It is the quality of the information, however, that causes me concern. It seems like every day the Division of Enforcement brings me a new material misrepresentation case. Not surprisingly, however, few involve underwritten public offerings. It is just amazing how strict liability can increase the quality and reliability of information. Accordingly, it is the continued existence of the preliminary prospectus, combined with Section 11 of the Securities Act, that relieves my concerns about the quality of information.