Blue Sky Laws are state-level securities laws that regulate the sale of securities to protect investors from fraudulent or risky investments. The name "blue sky" comes from the idea that these laws aim to prevent shady investments from being sold with nothing to back them up, much like how the phrase "selling the blue sky" is used to describe a scam.

Blue Sky Laws vary from state to state but generally require companies and brokers to register with state securities regulators before they can offer securities to the public. The registration process usually involves disclosing detailed information about the company and the securities being offered, including financial statements, business plans, and other relevant information.

The laws also require brokers to be licensed and registered with the state, and they set standards for advertising and selling securities. Blue Sky Laws provide investors with recourse in case of fraud, misrepresentation, or other violations, and they empower state regulators to investigate and prosecute those who break the law.

In summary, Blue Sky Laws are state-level regulations that aim to protect investors from fraudulent or risky investments. By requiring registration and disclosure from companies and brokers, and by setting standards for advertising and selling securities, these laws provide investors with more information and recourse in case of fraud or other violations.

Blue Sky Laws are state-level regulations in the U.S. designed to protect investors from fraudulent securities offerings. Enacted before federal securities laws, they require companies issuing stocks, bonds, or other investments to register their offerings and provide detailed financial disclosures. State regulators review these filings to ensure transparency and prevent scams, hence the name, referring to shady schemes selling nothing but "blue sky." These laws vary by state but generally mandate licensing for brokers, dealers, and investment advisers. While the federal Securities Act of 1933 and the SEC oversee national markets, Blue Sky Laws add an extra layer of investor protection at the state level. Investors can verify a security’s registration with their state’s securities regulator before investing, reducing the risk of fraud.