For a mock NASAA exam, assume the administrator is testing this exact point. Assume the administrator is testing the cleanest state-law answer. State securities laws are commonly referred to as:

Why B — Blue sky laws

State securities laws are commonly known as 'blue sky laws,' a term that originated from the desire to protect investors from speculative schemes that had 'no more basis than so many feet of blue sky.' The Uniform Securities Act is a model blue sky law that many states have adopted in whole or in part. The governing USA principle is unchanged even though the framing is different.