State statutes designed to protect the public from the sale of worthless stocks and bonds are called: ______.

Question

Quizplus · Accepted Answer

Blue sky laws are state-level regulations that protect investors from fraudulent practices in the sale of securities. These laws require registration of securities offerings and salespersons and provide disclosure requirements to ensure that investors receive all relevant information before making investment decisions. Antifraud acts (A) are federal laws that prohibit deceptive and manipulative practices in securities transactions. Investment contract laws (C) and pump and dump laws (D) are terms used to describe specific types of fraudulent behavior in the sale of securities, rather than state statutes.

State Statutes Designed to Protect the Public from the Sale