U.S.A. — Introduction to State Securities (Blue Sky) Laws

Summary

Every state in the U.S. has its own securities laws, commonly known as "blue sky" laws. The laws vary from state to state, but most states have certain licensing requirements for brokerage firms, their brokers, and investment adviser representatives doing business in that state. Most states laws require companies making offerings of their shares to register their offerings before they can be sold in a particular state. This practice note provides an overview of the blue sky laws and when they apply.