BizTerm Definition
Blue Sky
Full Definition

These are state securities laws designed to protect individual investors. The phrase purportedly originated from a state judge who said that the securities of a particular company had all the value of a patch of blue sky. Both companies and mutual funds are affected by state blue sky laws. However, the SEC and Congress are in the process of superseding these rules, because the rules in some states are obsolete, arbitrary and poorly enforced.

Previous Biz Term Next Biz Term