The securities of certain smaller companies going public must also be qualified under the ________ of each state where the securities will be offered.

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Quizplus · Accepted Answer

Blue sky laws are state regulations that require securities to be registered and qualified before they can be sold within that state. This requirement helps protect investors from securities fraud and ensures that companies are meeting certain standards before they can sell securities to the public. Therefore, smaller companies going public must also comply with blue sky laws in each state where they plan to offer their securities. The Securities and Exchange Commission (SEC) is a federal agency that oversees securities transactions and enforces federal securities laws, but blue sky laws are state-level regulations. The Markets Improvement Act and Internal Revenue Service are also federal regulations and do not pertain to state-level securities offerings.

The Securities of Certain Smaller Companies Going Public Must Also