Series 63 practice questioneasyFederal/State Coordination — Blue Sky Laws
State securities laws are commonly referred to as:
- ASunshine laws
- BBlue sky laws✓ Correct answer
- CFair weather regulations
- DClear skies acts
Explanation
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.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Regulation of Securities & Issuers questions
- When a conflict exists between a state blue sky law and a federal securities law regarding the registration of a…
- Which of the following is NOT considered a federal covered security under NSMIA?
- Under NSMIA, states retain the authority to:
- The National Securities Markets Improvement Act of 1996 (NSMIA) primarily affected state securities regulation by:
- A mutual fund registered under the Investment Company Act of 1940 wants to sell shares in a particular state. What must…
- A broker-dealer sells unregistered securities to a pension fund, an insurance company, and three high-net-worth…
- Prior to NSMIA, a company conducting a multi-state offering had to register its securities in each state where the…
- Mary sells shares she owns in a private company to her neighbor in a one-time transaction. Mary is not an issuer,…