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 statutes designed to protect the public from the sale of worthless stocks and bonds. They require companies and brokers to register their securities offerings and provide financial and other information to potential investors. The goal of these laws is to prevent fraud and ensure that investors have access to accurate and sufficient information before investing in securities. Antifraud acts may provide some protections against the sale of worthless securities, but they are not specific state statutes like blue sky laws. Clear sky laws are not a recognized legal term.

State Statutes Designed to Protect the Public from the Sale