What Is Blue Sky Laws?
State securities laws that regulate the offer and sale of securities within that state, established before federal securities laws to protect investors from fraud. While the federal SEC provides a baseline, blue sky laws vary by state and can impose stricter requirements. Securities offerings may need to be registered or qualify for exemption in each state.
Blue Sky Laws across 4 exams
Blue Sky Laws appears on the following exams. Each defines it in the context candidates are tested on:
- SIE
- State securities laws that regulate the offer and sale of securities within that state, established before federal securities laws to protect investors from fraud. While the federal SEC provides a baseline, blue sky laws vary by state and can impose stricter requirements. Securities offerings may need to be registered or qualify for exemption in each state.
- Series 7
- State-level securities regulations designed to protect investors from fraud by requiring registration and disclosure for offerings sold within that state. They operate alongside federal securities laws.
- Series 65
- A common nickname for state securities laws designed to protect investors from fraudulent securities offerings. Each state administers and enforces its own version, typically based on the Uniform Securities Act.
- Series 66
- A general term for state securities laws designed to protect investors from fraudulent sales practices and worthless securities offerings. Each state administers its own blue sky laws, often modeled on the Uniform Securities Act.