A blue sky law is a state law regulating the offer and sale of securities, as well as the regulation of broker dealers and stock brokers. Though the specific provisions of these laws vary from state to state, the laws require registration of securities offerings, and registration of brokers and brokerage firms. Each state has a regulatory agency which administers the law, typically known as the state Securities Commissioner. A list of state securities commissioners, and their addresses, is available in our Guide to State Securities Regulators.
While anti-fraud regulations are most commonly enforced by the SEC and the various SROs, the states also have the power and authority to bring actions against securities violators pursuant to state law. Each state has its own securities act, known colloquially as the “blue sky law”, which regulates both the offer and sale of securities as well as the registration and reporting requirements for broker-dealers and individual stock brokers doing business (both directly and indirectly) in the state, as well as investment advisers seeking to offer their investment advisory services in the state.
For a full introduction, see Introduction to the Blue Sky Laws