Securities Industry Regulations - Blue Sky Laws

Each state has laws that apply to the issuance and trading of securities. State securities laws are called blue sky laws. Most states require those broker-dealers and their representatives who conduct business in their state to register with the state's securities administrator. The state's securities administrator has the power to revoke a broker-dealer's registration or a representative's license if either one has violated the state's securities laws. Securities must also be registered in the state before they may be sold there. Exemptions from state securities requirements include the following:



  • Securities listed on a registered stock exchange
  • Registered investment companies
  • Banks
  • Insurance companies
  • Private investment companies
  • Private placement
  • Nonprofit organizations
Introduction


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RELATED TERMS
  1. Blue Sky Laws

    State regulations designed to protect investors against securities ...
  2. Intrastate Offering

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  3. State Administrator

    The government agency or official who oversees and enforces state-level ...
  4. Security

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  5. Registration

    1. The process by which a company files required documents with ...
  6. Securities Exchange Act Of 1934

    The Securities Exchange Act of 1934 was created to provide governance ...
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