Blue-Sky Laws

Individual state securities laws in the U.S. that require corporate issuers and funds to register their shares and to provide details on each share class so that investors can base their investment judgments on relevant data. The purpose of the laws is to prevent securities fraud—in other words, to protect investors from inadvertently buying a piece of “blue sky”. Exchange-traded securities, including funds, are not subject to state registration.

© Copyright 1996, 1999 Gary L.Gastineau. First Edition.
© 1992 Swiss Bank Corporation.