Blue Sky Laws

Blue Sky Laws are state-level regulations designed to protect investors from securities fraud. The term originated in the phrase “blue sky,” referring to the goal of ensuring that investors are not sold fictitious or inflated investments. These laws require sellers of securities to register their offerings and provide essential information about the investment, such as potential risks. By doing so, they aim to create transparency and instill confidence in the marketplace, ensuring that investors have the necessary information to make informed decisions before investing their money.