Financial

blue sky laws

Also found in: Dictionary, Legal, Wikipedia.
(redirected from blue sky law)

Blue Sky Laws

Laws requiring research and transparency to ensure that a new issue of a security complies with applicable laws in the state in which they are issued. It especially refers to laws protecting investors from securities fraud. The term became popular when U.S. Supreme Court Justice Joseph McKenna wrote in Hall vs. Geiger-Jones Company (1917) that he wished to protect investors from securities with "no more basis than so many feet of 'blue sky.'" See also: Due Diligence.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

blue sky laws

State regulations that cover the offering and sale of securities within state boundaries. Although the laws differ among states, most include provisions relating to fraudulent activities and the licensing of individuals who sell securities. The term derives from an effort to protect investors from unwittingly buying a piece of "blue sky."
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Blue sky laws.

Blue sky laws require companies that sell stock, mutual funds, and other financial products to register new issues with the appropriate public agency.

The companies must also provide financial details of each offering in writing so that investors have the information they need to make informed buy and sell decisions.

These laws are state rather than federal laws, and owe their origin -- at least in legend -- to a frustrated judge who equated the value of a worthless stock offering to a patch of blue sky.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
Mentioned in
References in periodicals archive
Historically, these blue sky laws and regulations--in particular, the state provisions requiring that securities offered by issuers be registered with the states--have been an impediment within our market economy to the efficient movement of capital to its highest and best use.
The TSA, like other states' Blue Sky laws, provides for secondary liability for both intentional and reckless conduct.
Rarely have statutes enacted with such fanfare and general support subsequently been so universally deprecated In the brutal glare that followed the 1929-1932 stock market crash, it was apparent to virtually all commentators and congressional witnesses on the subject that the blue sky laws never really had a chance to succeed.
An introduction to blue sky laws, found on the site's compliance page, is a brief article that explains the role that the states play in securities regulation; the registration of securities transactions; and the registration of brokers, dealers, and agents.
This disclaimer of a solicitation or offer may be necessary to protect the issuer and its employees from being characterized as issuer agents required to register under state blue sky laws.
With the foreclosure of many of these federal causes of action, state statutes such as the mini-RICO statutes, blue sky laws and deceptive trade practices may provide a new focus for litigation.
Thus, prudent RRG organizers will proceed on the basis that the exemptions from the federal securities law registration requirements and state blue sky laws will not apply to ownership interests in the holding company.
Elias will also be published in the Daily News section of Standard Corporation Records, a recognized securities manual for secondary trading in up to 38 states under their Blue Sky Laws.
Before they even begin to describe the federal securities laws, the authors devote over one hundred pages to tracing the history of the Blue Sky laws and analyzing their provisions (pp.
Editorial covers: shareholder derivative actions; SEC enforcement; increased responsibility of Boards of Directors; state securities and Blue Sky laws; managing company communication before and during litgation; disclosure requirements and liability; insider trading; and, defenses against suits.
Copyright © 2003-2025 Farlex, Inc Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.