State laws that regulate sales of securities within the state are called:
A) Red herring
B) Registration laws
C) Rule 415
D) Blue-sky laws

Question

Quizplus · Accepted Answer

Blue-sky laws are state-level regulations that govern the sale of securities within a state. These laws are designed to protect investors from fraudulent practices by requiring registration of securities offerings and licensing of brokerage firms and their representatives. The term "blue sky" refers to the idea that the laws provide a safeguard against fraudulent schemes that are as insubstantial as a piece of sky. Red herring and Rule 415 are SEC regulations related to the issuance of securities, and registration laws is a broad term that could refer to any law that requires registration of a particular activity or profession.

State Laws That Regulate Sales of Securities Within the State