Blue Sky Laws

What does it mean?
State regulations designed to protect investors against securities fraud by requiring sellers of new issues to register their offerings and provide financial details. This allows investors to base their judgments on trustworthy data.

In Other Words...
The term is said to have originated in the early 1900s when a Supreme Court justice declared his desire to protect investors from speculative ventures that had "as much value as a patch of blue sky."

Related Links
Investment Scams Tutorial - To bamboozle someone out of their money is an age-old ruse. Learn about some of the gimmicks modern-day swindlers use and avoid becoming a statistic.

Related Terms
Boiler Room | Bucket Shop | Bucketing | Churning | Circular Trading | Front Running | OTC Market | Poop and Scoop | Pump and Dump | SEC

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