A term used to describe state laws and regulations governing the issuance and sale of securities to residents of a state and the licensing and regulation of securities brokers and dealers.
popular name for State statutes controlling offers and sales of securities and intended to protect investors from fraudulent schemes that "have no more basis than so many feet of blue sky."
(USA) State laws regulating the offer and sale of ... Add a comment
A blue sky law is a state law in the United States that regulates the offering and sale of securities to protect the public from fraud. Though the specific provisions of these laws vary between states, they all require the registration of all securities offerings and sales, as well as of stock brokers and brokerage firms. Each state's blue sky law is administered by its appropriate regulatory agency, and most also provide private causes of action for private investors who have been injured by securities fraud.