However, these blue sky laws were generally found to be ineffective.

The state security laws are often known as blue sky laws.

This is very different from the philosophy of the blue sky laws, which generally impose so-called "merit reviews."

Many states also regulate broker-dealers under separate state securities laws (called "blue sky laws").

State laws governing issuance and trading of securities are commonly referred to as blue sky laws.

Prior to the Act, regulation of securities was chiefly governed by state laws, commonly referred to as blue sky laws.

Historically, the federal securities laws and the state blue sky laws complemented and often duplicated one another.

Prior to the enactment of the federal securities laws and the creation of the SEC, there existed so-called blue sky laws.

Also, The New York Times (and other national newspapers) frequently reported on the blue sky laws as various states began to enact them between 1911 and 1916.

Breeden has also called for the elimination of many state laws that regulate the public sale of corporate stocks and bonds - the so-called blue sky laws.

For example, the Investment Bankers Association told its members as early as 1915 that they could "ignore" blue sky laws by making securities offerings across state lines through the mail.

After the Securities and Exchange Commission declares a registration statement effective and subject to compliance with state blue sky laws, a company may sell its shares to the public using a variety of methods.

While most violations of securities laws are enforced by the SEC and the various SROs it monitors, state securities regulators can also enforce state-wide securities blue sky laws.

All states have so-called blue sky laws, a phrase coined by early proponents of such regulations, who were concerned that investors would be swindled into buying everything including the blue sky if there were no protections.

Following registration with the Securities and Exchange Commission and subject to compliance with state blue sky laws, a company can sell its shares directly to anyone, including customers, employees, suppliers, distributors, family, friends and others.

Unlike state blue sky laws, which impose merit reviews, the '33 Act embraces a disclosure philosophy, meaning that in theory, it is not illegal to sell a bad investment, as long as all the facts are accurately disclosed.

They must observe "blue sky laws," under which most states police securities and mutual fund sales within their borders, and they are subject to insider trading rules and securities law requirements related to owning more than 5 percent of a stock.

CPAs must also be concerned with the application of the Racketeer Influenced and Corrupt Organizations Act (RICO) and with each state's blue sky laws (which regulate the issuance and trading of securities within a certain state).

Blue sky laws often impose very specific, qualitative requirements on offerings, and if a company does not meet the requirements in that state then it simply will not be allowed to do a registered offering there, no matter how fully its faults are disclosed in the prospectus.

Murphy reasoned that while the term "investment contract" was left undefined by the Act, it had been used in state blue sky laws to cover a broad array of contracts and other schemes to raise capital in a way to secure some income or profit from the use thereof.

Joseph Norman Dolley (1860-1940) was the bank commissioner of State of Kansas who pushed for the passage of the first state securities laws, known as the blue-sky laws.

But advocates for co-op boards say there is a loophole in New York State's blue-sky law, the Martin Act, which governs real-estate conversions as well as other types of security sales.

Such regulatory laws are commonly known today as "blue-sky laws"; the phrase is often said to be based on this opinion, although speculative securities were described as "blue sky" in sources published prior to this opinion.

Although Glass-Steagall was enacted during the Great Depression, it was put in place because the Aldrich-Vreeland Act of 1908, the blue-sky laws following 1910 and the Federal Reserve System of 1913 failed to keep the concentration of financial power in check.

While U.S. states maintain some control over securities fraud in a criminal context, and may require licensing of traders in securities under their blue-sky laws, the lion’s share of securities regulation in the United States now falls to the SEC.