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


Related Articles
  1. Professionals

    Succeeding At The Series 63 Exam

    Your career as a securities agent begins with this test. We'll show you how to score high.
  2. Options & Futures

    Series 63, Series 65 Or Series 66?

    When joining the world of investment professionals, you must take the right exams.
  3. Professionals

    Understanding Series 63

    Series 63 is a securities license that entitles the holder to sell securities in a particular state.
  4. Economics

    Law Of Diminishing Marginal Utility

    Learn about this law of economics related to consumption.
  5. Professionals

    Career Advice: Accounting Vs. Law

    Identify the key differences between working in accounting and working in law. Understand which specific skills make you better-suited for each career.
  6. Professionals

    Who Needs to Take the Series 65?

    Most states require individuals to pass the Series 65 exam in order to act as investment advisors.
  7. Professionals

    Should You Add A Securities License To Your Qualifications?

    Clients love planners who sell securities, but a securities license takes a lot of work. Learn if the stress and study are worth it.
  8. Professionals

    Introduction To The Series 65 Exam

    The Series 65 is required in many states in order to be a fee-based advisor. Find out what it is and whether you need it.
  9. Professionals

    Breaking Down Financial Securities Licenses

    Find out which exam you need to begin your career as an investment professional.
  10. Investing News

    EU Privacy Laws May Pinch Big Tech's Profits

    Will the EU's new privacy laws cut into the data harvesting that has been Big Tech's bread and butter for a decade?
RELATED TERMS
  1. Financial Responsibility Law

    A law which requires an individual to prove that he or she is ...
  2. Uniform Securities Act

    An act created as a starting point for state-level securities ...
  3. State Administrator

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

    A financial instrument that represents an ownership position ...
  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 ...
RELATED FAQS
  1. Is a person registered for Financial Instruments Business eligible to conduct both ...

    Explore Japan's 2006 Financial Instruments and Exchange Law, and understand how the law affects investment services regulation. Read Answer >>
  2. Under the Uniform Securities Act, which of the following actions is permitted for ...

    The correct answer is d). A sales representative may not make trades in a state unless both the sales representative and ... Read Answer >>
  3. The de Minimis clause for investment advisers means:

    A. An investment adviser must register with the state if it holds less than $25 million in assets.B. An investment adviser ... Read Answer >>
  4. John King, a CFA, resides in Jurisdiction A, where the securities laws and regulations ...

    The correct answer is d. Since the Law of Locality applies, and King performs his business in Jurisdiction B (where securities ... Read Answer >>
  5. Where do I take the Series 63 examination?

    Find out where to take the Series 63 examination for securities agents, and learn more details about the test's purpose and ... Read Answer >>
  6. Are series 63 exams given outside of the United States?

    Learn more about the series 63 exam, and find out about testing locations and citizenship requirements. Discover which materials ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center