Blue Sky Laws

Blue Sky Laws in the United States

“Blue Sky Laws” is the collective name for the securities regulation statutes of the 50 states. These laws can be found in each state’s codified statutes, administrative codes and cases.

Practical Information

Statutes that have been enacted by most states to protect the public from fraud (in U.S. law) in the offering of securities. The term probably derives from the fact that promoters, practicing fraud, were accused of selling stock that had as much worth as a piece of blue sky. These laws supplement interstate regulation of securities offerings, securities exchanges, and speculative practices, through the Securities and Exchange Commission. Actually, protection is achieved through (1) specific legislation blue sky laws, and (2) through enforcement of antifraud statutes. (Revised by Ann De Vries)

What is Blue Sky Laws?

For another meaning of it, read Blue Sky Laws in the Legal Dictionary here.

Legal Materials

The Blue Sky statutes, regulations and (summaries of) cases of all the states are compiled in CCH’s Blue Sky Law Reporter. The Reporter is available in print as a multi-volume looseleaf and online through Lexis (CCH;CCHSEC), Westlaw (CCH-BSLR) and CCH’s subscription-based Intelliconnect.

Treatises

Blue Sky Regulation (Lexis); Blue Sky Practice for Public and Private Limited Offerings (West).

Legal Materials of State Blue Sky Laws

For Legal Materials of State Blue Sky Laws, click here.