blue-sky law definition by Webster's New World
Origin: said to be so named from the comment made by a proponent of the first such law that certain business groups were trying to “capitalize the blue skies”
blue-sky law definition by American Heritage Dictionary
blue-sky law - Investment & Finance Definition
A state law that is designed to protect the public against securities fraud. Kansas was the first state to enact a securities registration law, in 1911. When announcing the legislation’s passage, lawmakers said, “The State was the hunting ground of promoters of fraudulent enterprises...so barefaced...that it was stated they would sell building lots in the blue sky.” Since then, state securities laws have been referred to as blue sky laws.Webster's New World Finance and Investment Dictionary Copyright © 2010 by Wiley Publishing, Inc., Indianapolis, Indiana. Used by arrangement with John Wiley & Sons, Inc.
blue-sky law - Legal Definition