Blue Sky Laws

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. Professionals

    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. Markets

    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. Personal Finance

    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.
  4. Investing

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

  5. Markets

    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.
  6. 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.
  7. Managing Wealth

    What does "Blue Chip" Mean?

    Describing a business as “blue chip” comes from the game of poker, where blue chips are the most valuable.
  8. 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.
  9. 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.
  10. Markets

    Get To Know These Crucial US Options Market Regulations

    How are options regulated in the U.S and which organizations are involved in options market regulations?
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 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 >>
  5. Do common stock owners have any protections against bankruptcy or fraud?

    Learn about common stock ownership including the standing of holders in the event of bankruptcy or fraud, and familiarize ... Read Answer >>
  6. Can either a SEP IRA or a SIMPLE IRA be attached in a bankruptcy or malpractice action, ...

    State law determines whether or not an IRA, including SEP, SIMPLEs and Roth IRAs, can be attached in any bankruptcy proceedings, ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center