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blue sky laws
(redirected from Blue-sky laws)

   Also found in: Dictionary/thesaurus, Financial 0.01 sec.

blue sky laws n. laws intended to protect the public from purchasing stock in fraudulent companies that lack substance, such as those selling swamp land, non-existent gold strikes and dry oil wells, or who have no assets besides a post office box. Blue sky laws require that corporations advertising and selling shares to the public must get approval from the state corporations commissioner and/or the Securities Exchange Commission after providing details on financing and management. The term comes from the intent to prevent the existence of corporations that have nothing behind them but "blue sky." (See: corporation)



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Blue-sky laws regulate the offerings and sales of securities within a certain state to protect investors against fraud.
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.
 
 
 
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