Wednesdsay September 8, 1999 THE OAKVILLE BEAVER D5 Internet can be pit of snakes for investors The Internet can be a great resource for investors looking for information. But it can also be a pit of snakes for the i^nwary. The Internet is being used increas ingly in bogus attempts to sell securi ties, offer "hot tips" and influence secu rities prices through false claims and misrepresentations. Not only are many of these practices illegal, but they can also end up bilking innocent investors, perhaps, of their life savings. Investors must take all securities information they read on the Internet with a healthy dose of skepticism unless the information is from a credi ble and confirmable website, such as those of major investment dealers, the exchanges. SEDAR (www.sedar.com) is an online site operated by the Canadian Securities Administrators where Canadian insiders and securities issuers are required to file prospectuses and other documents. Its American counterpart is EDGAR (www.edgar.com), through which you can get access to documents filed with the U.S. Securities and Exchange Commission. Many Games 4 The con artists play many games. On bulletin boards, in news and discus sion groups, "touts" try to talk up spe cific securities for their own benefit. They will claim they have hot tips or inside information to let people get in ly-traded or over-the-counter security. More often than not, the writer is one of a tiny handful of investors working to misrepresent the facts and drive up the price of a worthless security. The infor mation - and the name the person uses online - are usually false. Nevertheless, these online tou*1' have had success. And afterwards, they and their securities disappear. It is an old game that con artists have used for decades. The Internet gives them a vast new forum. Internet "cons" include pyramid schemes, cyber chain letters, and fan tastic-sounding new products, such as "wireless" cable television. These schemes prey upon the unwary. also concerned that genuine securities are being traded illegally from province to province. Canadian law requires that people whose business is to trade in, or advise in, securities must be registered in each province where they do busi ness. That means that, if you live in Ontario, and want to deal with securi ties professionals from Alberta, they must be registered in Ontario. This also applies internationally. Regulators are finding that more deal ers from around the world are using the Net to advertise their services, and they are accepting clients1 and doing busi ness in jurisdictions where they are not licensed. Concern is that some securities pro securities commissions and stock "on the ground floor," usually of a thin- Canada's securities regulators are fessionals are using the Internet to More businesses embracing Internet Results of a national survey conduct ed from January through June of this year, reveal 61% of the country's small- and medium-sized business sector is now connected to the Internet -- up from 44% in 1998, and about double the num ber measured just two years previously. The findings are based on 18,514 in-per son interviews conducted by the Canadian Federation of Independent Business (CFIB) in every region of the country. "At this rate of growth," says CFIB director of research, Ted Mallett, "we are expecting that three-quarters of Canada's smaller firms will be linked to the Internet in the year 2000." Mallett said the results show Internet use is growing in every region of the country, and that it's strongest in British Columbia with 67% of smaller firms now linked to this technology. He said Alberta has the next highest reading at 66%. The numbers for the rest of the country have Manitoba, Newfoundland, and New Brunswick running close to the national average at 60%, 59% and 58% respectively. On the other hand, noted Mallett, only 53% of Saskatchewan's smaller firms are Internet linked, and Quebec has the smallest provincial num ber at 47%. "But even those two provinces with the lowest usage are showing strong gains over a year," said Mallett, "with a 14-percentage point rise in Saskatchewan and a 16-point increase in Quebec. Saskatchewan's lower rate is likely a reflection of the greater percent age of very small firms in its small busi ness sector, while the strong growth in Quebec indicates small business owners are overcoming the initial shortage of French-language resources on the Internet." Across various business sectors, Mallett says it appears Internet usage is dependent on the nature of the particular type of industry. He noted that firms in the business services industry are the most connected, and that those in the finance, community services, wholesale trade and manufacturing sectors also report strong Internet growth. On the other hand, he said industries with less defined information needs, such as retail, construction, hospitality and personal services, show lower rates of Internet use. Nevertheless, Mallett said usage has been growing steadily among businesses of all sizes, pointing out that those employing between 100 and 499 persons (medium-sized firms), are the most con nected with a reading of 88%. At the other end of the size spectrum, he said 51% of firms with four or fewer employ ees are currently linked. The survey also measured the extent to which Canadian entrepreneurs not only are drawing from the Internet, but also adding their own content. Mallett said the results show that websites are becoming an important tool for both out bound marketing and communications for smaller firms. He said a national aver age of 18% of smaller businesses have their own websites, with the highest numbers being in Ontario at 23%, Alberta with 21% and B.C. at 19%. Mallett said that although websites are most common among larger firms, they are becoming prevalent even among the smallest businesses. To illustrate his point, he said 12% of businesses employ ing fewer than five persons reported hav ing their own websites, compared with 18% of firms with five to 19 employees; 26% of business in the 20-49 employee range; 35% with websites among firms at the 50-99 staff category and 42% of firms with more than 100 employees. While there are some differences in W o m e n c a n t r a i n f o r m a n u f a c t u r i n g Young women wishing to break into careers in the manufacturing sector, may be eligible for sponsorship in The Centre for Skills Development & Training's Tool & Die Maker/General Machinist pre-apprenticeship program for women, beginning in late September. The Automotive Parts Manufacturers' Association (APMA) has received funding from the Ontario Ministry of Food, Agriculture and Rural Affairs, to sponsor young women, up to age 29, in the program, which includes 30 weeks of in-class training, leading to 20 weeks of paid employment. Deadline for applications is Sept. 13th. Manufacturing Technology for Women is a pilot project under the lead ership of the APMA and with the partic ipation and support of local employers, the Ontario Women's Directorate, the Women in Trades Technology, Operations and Blue Collar Work National Network and the Halton Industry and Education Council. For more information, call Isabel Webb at the Centre; 333-3499, ext. 121. rates of Internet adoption, said Mallett, the results show that once a business has made the decision to subscribe to an Internet service, the pattern of usage is very consistent, regardless of size or sec tor of firm. He added that when asked how they use the Internet, that more than 80% of the respondents said they do so for e-mail and obtaining business infor mation. E-commerce is also showing early promise, said Mallett, noting that between 22% and 31% of business own ers reported they are using the Internet to conduct financial transactions. Despite the apparent potential of e- commerce, Mallett said it is important to bear in mind that this new way of conducting business encompasses a range of .transactions that vary in degrees of complexity. He said e-com merce can mean anything from a simple electronic advertisement, to a complex real-time transfer of funds between buy ers' and sellers' bank accounts. Some firms are, therefore, able to use e-com- merce as a feature to their traditional sales techniques, said Mallett, while others are structuring their entire opera tions around a "virtual world." Mallett also said that for those firms looking only to purchase products over the web, the process is relatively simple, but for the ones wishing to sell their products on the Internet, the barriers can be far more significant. He cautioned that the costs of systems and software, issues of credit, customs and encryp tion, as well as the need for a new set of employee skills and new delivery infra structures all need to be weighed care fully before businesses plunge ahead into e-commerce. advertise their services and solicit busi ness without the knowledge of their employers. Sometimes, the advice offered is illegal. Others are attempting to sell securi ties without first having registered a prospectus, a legally required document that describes the issuing company, its business, finances, sareholders, and other relevant information. Protect Yourself Protecting yourself against Internet investment fraud and misrepresentation depends on some plain old common sense. Do not believe everything you read simply because it appears on a computer screen. Similarly, do not assume that you know who you are dealing with. In unregulated cyber space, anyone can post any message anywhere and say anything. Do not assume that the online service provider polices such people. It is not possible for them to keep up with the volume of postings on the Net. And it's easy for a con artist to quickly bail out of one posting and create another minutes later. On the Internet, common sense dic tates that you should verify everything. Be certain that the dealer with whom you want to do business is licensed in your province, do not take his or her word for it. Verify it with the securities commission. Do not jump into deals on thinly- traded, little known securities solely on the basis of Internet information. Consult with a qualified financial advi sor. Do research and verify all informa tion. Don't believe supposed "hot tips" and "insider information." Both are usually bogus and the latter is illegal. Even if a company is offering to sell its own securities directly, be careful. The company must have filed a prospectus with the securities commis sion in your jurisdiction. It must have received a prospectus receipt from the commission. And it must be registered to trade in its securities in your jurisdic tion. Use the Internet to extend your knowledge as a wise investor. Be dis criminating and cautious. Question and verify everything you read. With com mon sense, you can avoid the cons and frauds. This article has been prepared by the Canadian Securities Administrators. For a free investor kit, please call the Ontario; Securities Commission at 416-593-8117*! or the investor Learning Centre at 1-888-; 452-5566. Click Here HaltQnSeanch.com A n idea w hose tim e h a s come. Call 337-5599 for more information ROYAL LePAGE P e t e r & J o s i e R A C C O Associate Broker i . Sabs Representative Community Profiles & Events Learn more about your community Community News News direct from your town B u iq d Btdfce a w U W u M to t ROYAL MenUecturtng Quality Sleep Products since 1867 MATTRESS MCF0G * < 5 2 ? 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