blue sky laws

blue sky laws
n.
State statutes that regulate the issue and sale of securities.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.


blue sky laws
The laws that aim to protect people from investing in sham companies that consist of nothing but "blue sky." Blue sky laws require that companies seeking to sell stock to the public submit information to and obtain the approval of a state or federal official who oversees corporate activity.
Category: Business, LLCs & Corporations

Nolo’s Plain-English Law Dictionary. . 2009.

blue sky laws
USA
This term refers to state statutes providing for the regulation and supervision of securities offerings and sales. Most blue sky laws require the registration of new issues of securities with a state agency that reviews selling documents for accuracy and completeness. Blue sky laws also often regulate securities brokers and salesmen. State securities laws are similar in scope to the federal securities laws.
See Practice Note, Registration Process: Overview (www.practicallaw.com/7-380-8736).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

blue sky laws
n.
   laws intended to protect the public from purchasing stock in fraudulent companies that lack substance, such as those selling swamp land, non-existent gold strikes and dry oil wells, or who have no assets besides a post office box. Blue sky laws require that corporations advertising and selling shares to the public must get approval from the state corporations commissioner and/or the Securities and Exchange Commission after providing details on financing and management. The term comes from the intent to prevent the existence of corporations that have nothing behind them but "blue sky."
   See also: corporation, stock

Law dictionary. . 2013.

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Look at other dictionaries:

  • blue-sky laws — plural noun (US) Laws to prevent fraud in the sale of stocks (against capitalizing of the blue skies stocks) • • • Main Entry: ↑blue …   Useful english dictionary

  • Blue-sky laws — State laws covering the issue and trading of securities. The New York Times Financial Glossary * * * blue sky laws blue sky laws ➔ law * * * blue sky laws UK US noun [plural] LAW, STOCK MARKET ► laws that exist in US states to prevent people from …   Financial and business terms

  • blue-sky laws — State laws covering the issue and trading of securities. Bloomberg Financial Dictionary * * * blue sky laws blue sky laws ➔ law * * * blue sky laws UK US noun [plural] LAW, STOCK MARKET ► laws that exist in US states to prevent people from… …   Financial and business terms

  • blue sky laws — A popular name for state statutes providing for the regulation and supervision of securities offerings and sales, for the protection of citizen investors from investing in fraudulent companies. Most blue sky laws require the registration of new… …   Black's law dictionary

  • blue sky laws — A popular name for state statutes providing for the regulation and supervision of securities offerings and sales, for the protection of citizen investors from investing in fraudulent companies. Most blue sky laws require the registration of new… …   Black's law dictionary

  • blue sky laws —    Laws that are designed to protect people from investing in fraudulent companies that have no assets and consist of nothing but blue sky. These laws require that companies seeking to sell shares to the public first provide information to and… …   Business law dictionary

  • Blue Sky Laws —    State laws in the United States aimed at protecting the public against securities frauds. They require new issue offerings to be registered and full financial details provided. The phrase is thought to derive from a reference by a Supreme… …   Financial and business terms

  • Blue Sky Laws — 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. The term is… …   Investment dictionary

  • blue sky laws — An appellation for a type of statutes, which apparently originated in the expression concerning the credulous as dumb enough to buy blue sky, if it is offered to him ; statutes intended, by the requirements which they impose, to prevent fraud in… …   Ballentine's law dictionary

  • blue-sky laws —  State securities laws requiring sellers of new stock issues to register and provide financial information about the company …   American business jargon

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