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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Blue-sky laws  

Definition 1.

State laws covering the issue and trading of securities.
 

Definition 2.

State laws that require issuers of securities to register their offerings with the state before they can be sold to its residents. Most blue-sky laws include provisions relating to fraudulent activities and the licensing of people selling securities. Nasdaq National Market securities, subject to higher qualifications standards, are exempted from registration requirements under most states' blue-sky laws as are those listed on exchanges.
 
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