Blue-sky laws apply mainly to the
A) operation of local brokerage firms.
B) sale of new securities.
C) purchase of shares by insiders.
D) sale of securities on the secondary market.
E) issuance of unsecured bonds.

Question

Quizplus · Accepted Answer

Blue-sky laws are state-level regulations that govern the sale of new securities. They require the registration of securities offerings and aim to protect investors from fraud by requiring companies to disclose relevant information about the securities being offered. Blue-sky laws also provide oversight for investment professionals and brokerage firms operating within a state.

Blue-Sky Laws Apply Mainly to the