Definition of blue-sky law in English:

blue-sky law

noun

  • A law regulating the sale of securities, intended to protect the public from fraud.

    • ‘In the U.S. Kansas was the first state to pass a “blue sky law” in 1911.’
    • ‘By 1933, all but one state had passed blue sky laws; today, all fifty states, the District of Columbia, Guam, and Puerto Rico have blue sky laws in force.’
    • ‘Since bond indentures do not incorporate into themselves provisions of fraudulent, conveyance law, state corporation law, blue-sky law or the law of fraud, violations of these laws do not result in an Event of Default.’
    • ‘Probably a lot of bucket shop operators had the same reaction to states which passed blue sky laws requiring securities disclosure.’
    • ‘New York's legislature was one of the last to pass a blue-sky law, letting through a deliberately enfeebled version.’