n. regulations intended to protect the public from purchasing stock in deceptive organizations that lack substance, like those attempting to sell swamp land, non-existent silver hits and dry oil wells, or who have no possessions besides a post company package. Blue-sky laws need that corporations advertising and offering stocks to your public must get approval through the condition corporations commissioner and/or the Securities and Exchange Commission after providing information on financing and management. The term comes from the intention to stop the existence of corporations having nothing behind them but "blue sky."
in america, this might be a favorite title for assorted condition laws enacted to guard the public against securities fraud. The definition of is believed to own originated when a judge ruled that a specific stock had comparable worth as a patch of blue-sky.
make an effort to prevent systems to protect the niave investor.
try to get a handle on blue-sky schemes in interest of unsophisticated investors.