Blue Sky Law

n. law that regulates the sale of securities (as stock)

A blue sky law is a state law in the United States that regulates the offering and sale of securities to protect the public from fraud. Though the specific provisions of these laws vary between states, they all require the registration of all securities offerings and sales, as well as of stock brokers and brokerage firms. Each state's blue sky law is administered by its appropriate regulatory agency, and most also provide private causes of action for private investors who have been injured by securities fraud.
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Noun
1. a state law regulating the sale of securities in an attempt to control the sale of securities in fraudulent enterprises
(hypernym) law
(classification) law, jurisprudence

An American law term that refers to government controls, through statutes, of the sale of securities to the public. - (read more on Blue Sky Law)