Blue sky regulations are implemented at the State level and are regulations for combating fraud, needing security-issuers to have registration, while revealing all details of their services/offerings. These laws develop issuer liabilities, enabling legal investors/authorities to take stringent action against these parties for not complying with legal provisions.
Blue sky laws are regulations of the State, which are safety nets for all investors, helping combat securities-linked frauds. The regulations vary across States and regions. They usually require the registration of product offerings by sellers of securities and issues. Investors are enabled by these laws to have all the details they require within easy access, helping them take better and more informed decisions at the outset.
Blue sky laws are an extra layer of regulatory measures for securities. They are licenses for investment and financial advisors, firms offering securities, brokerages and so on. These laws ensure higher investor protection, and may apply to brokers/entities selling real estate securities or other investment plans as well.
