Internet technology is profoundly affecting the evolution of financial services activities. Issuers and financial service providers increasingly sell securities or provide financial services on the Internet. Indeed, the typically "non-physical" or "dematerialized" nature of securities transactions makes the Internet an appealing medium for the financial services industry. At a relatively low cost, the Internet offers unprecedented immediacy, flexibility and interactivity, magnifying the financial services industry's ability to reach into the retail market. Hermes N. Stephanou, founder of xak.com