blue-sky law


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blue-sky law

n.
Any of various state laws regulating the issuance and sale of securities in order to protect the public from fraud.

blue-sky law

n
(Stock Exchange) US a state law regulating the trading of securities: intended to protect investors from fraud

blue′-sky′ law`


n.
a law regulating the sale of securities or real estate, esp. one designed to prevent the sale of fraudulent stocks.
References in periodicals archive ?
These steps included the preemption of state blue-sky laws, favorable margin rules and eligibility for "shelf" registration.
The registration statement is intended, if it is declared effective, to ensure that the issuance of shares under these plans to Ligand's employees, consultants, directors or other eligible individuals are made in compliance with federal law and may be freely resold, upon compliance with any state blue-sky laws or company-imposed trading restrictions that apply.
However, it is recommended that brokers check with the blue-sky laws in their particular state.