Limited Offerings under Blue Sky Laws

Summary

This practice note discusses limited securities offerings available under state Blue Sky laws which are in many cases considered in combination or coordination with limited offerings available in the federal securities laws. Blue Sky Laws contain their own set of limited offerings that are generally based on provisions in either the original Uniform Securities Act or the 2002 Uniform Securities Act as now adopted in a considerable number of states, or designed to achieve important policy goals in small business capital formation. Local issuer offerings that are discussed further below are examples of such limited offerings. Also as discussed below, although some limited offering alternatives fall under statutory exemption headings, limited offerings are in many instances simply lesser forms of public offerings. They are in any case not exempt offerings as such and the distinction is important for practitioners.