blue sky laws


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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)

References in periodicals archive ?
Historically, these blue sky laws and regulations--in particular, the state provisions requiring that securities offered by issuers be registered with the states--have been an impediment within our market economy to the efficient movement of capital to its highest and best use.
Plaintiffs are increasingly seeking relief under state Blue Sky laws, (87) many of which contain the same elements of and defenses to aiding and abetting liability as do state common law claims.
5/12 (West 2008); TEXAS SECURITIES ACT [section] 33 (West 2008); see also LONG, BLUE SKY LAW, [section] 9.15 n.10 (West 2008).
Stinner, Note, Estoppel and In Pari Delicto Defenses to Civil Blue Sky Law Actions, 73 CORNELL L.
Also, subscribers to CCH's (Riverwoods, IL) "Blue Sky Law Reporter" now have access to "CCH Smart Charts," a service that allows users to compare state 2 securities law information across multiple jurisdictions.
This disclaimer of a solicitation or offer may be necessary to protect the issuer and its employees from being characterized as issuer agents required to register under state blue sky laws.
The risk presented by the state blue sky laws and deceptive trade practices is particularly onerous because these regulations apply a negligence standard rather than one of fraud.
Rarely have statutes enacted with such fanfare and general support subsequently been so universally deprecated In the brutal glare that followed the 1929-1932 stock market crash, it was apparent to virtually all commentators and congressional witnesses on the subject that the blue sky laws never really had a chance to succeed.
Nevertheless, compliance with state blue sky laws will be required, thus involving contact with securities regulators in each state where there is an owner/insured.
The Tender Offer is not being made to, nor will CEMEX accept tenders of the Notes from, holders in any jurisdiction in which the Tender Offer would not be in compliance with the securities or blue sky laws of such jurisdiction.
Elias will also be published in the Daily News section of Standard Corporation Records, a recognized securities manual for secondary trading in up to 38 states under their Blue Sky Laws.
Editorial covers: shareholder derivative actions; SEC enforcement; increased responsibility of Boards of Directors; state securities and Blue Sky laws; managing company communication before and during litgation; disclosure requirements and liability; insider trading; and, defenses against suits.