What are the 'Blue Sky Laws'

The Blue Sky Laws are state regulations designed to protect investors against securities fraud by requiring sellers of new issues to register their offerings and provide financial details. This allows investors to base their judgments on trustworthy data.

BREAKING DOWN 'Blue Sky Laws'

The term is said to have originated in the early 1900s when a Supreme Court justice declared his desire to protect investors from speculative ventures that had "as much value as a patch of blue sky."

RELATED TERMS
  1. Uniform Securities Act

    An act created as a starting point for state-level securities ...
  2. Blue Chip

    A nationally recognized, well-established and financially sound ...
  3. Major Fraud Act Of 1988

    A piece of legislation passed during the Reagan administration ...
  4. Default Judgment

    A binding judgment issued by a court in favor of the plaintiff ...
  5. Blue Sheets

    Requests for information sent out by the Securities and Exchange ...
  6. Blue List

    A daily digest of municipal and corporate bond offerings, market ...
Related Articles
  1. Financial Advisor

    Series 66 Exam Prep: The Uniform Securities Act

    Before you take the series 66, you need to understand the Uniform Securities Act and the Blue Sky Laws.
  2. Insights

    The SEC: A Brief History Of Regulation

    The SEC has continued to make the market a safer place and to learn from and adapt to new scandals and crises.
  3. Financial Advisor

    Build A Wall Around Your Assets

    Learn how to protect your money from lawsuits, creditors and other judgment proceedings.
  4. Insurance

    What You Need To Know About Insurance Fraud

    Insurance fraud is as old as commerce. Discover the types of life insurance fraud and how they affect you.
  5. Investing

    This Blue Chip Is Up 16% Since January -- Is It Still A Buy?

  6. Small Business

    Understand the SEC Rules on Equity Crowdfunding

    The SEC's adoption of equity crowdfunding rules, initiated under the JOBS Act, enables small investors to invest in companies that show early potential.
  7. Financial Advisor

    Succeeding At The Series 63 Exam

    Your career as a securities agent begins with this test. We'll show you how to score high.
  8. Investing

    What does "Blue Chip" Mean?

    Describing a business as “blue chip” comes from the game of poker, where blue chips are the most valuable.
  9. Personal Finance

    Mortgage Fraud: Understanding and Avoiding It

    There are many different ways to be victimized through home ownership - learn how to identify and avoid these crimes.
  10. Financial Advisor

    Financial Fraud: 6 Tips to Avoid It (SCHW)

    A good financial planner should work with you and for you. Ensure you are paying attention if you don't want to be the victim of fraud.
RELATED FAQS
  1. What impact does government regulation have on the financial services sector?

    Learn about how the financial services industry is affected by government regulation, and the different types of regulations ... Read Answer >>
  2. 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 >>
  3. Should I care about the book value per common share when dealing with a blue chip ...

    See why shareholders of any listed company, even owners of blue chip stock, should care about what the book value per common ... Read Answer >>
  4. How did the stock market operate prior to the Securities and Exchange Commission?

    Read about the early stock exchanges in the United States, how corporations issued their shares through brokers and why railroads ... Read Answer >>
  5. How does government regulation impact the railroads sector?

    Explore different ways that government regulation has affected the railroad sector. Learn about key laws that have been passed ... Read Answer >>
Hot Definitions
  1. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  2. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  3. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  4. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  5. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  6. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
Trading Center