What are blue sky laws?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
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What are blue sky laws?

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Blue sky laws
  • Blue sky laws are state-level, anti-fraud regulations that require issuers of securities to be registered and to disclose details of their offerings.
  • Blue sky laws create liability for issuers, allowing legal authorities and investors to bring action against them for failing to live up to the laws' provisions.
  • Most states' blue sky laws follow the model Uniform Securities Act of 1956 and are superseded by federal securities laws in case of duplication.
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