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An Overview of State Blue Sky Laws

Sole proprietorships have the greatest exposure for the business owner, who is responsible for supplying all of the capital and takes on all of the liability. At the other end of the scale are fully-reporting public companies, which can raise capital from investors nationally and sell ownership on major federally-regulated exchanges such as the NYSE and the AMEX.

This paper is addressed to the majority of business people, those in the middle. Investors sometimes consider buying stocks in exchanges other than the major national US exchanges. Companies on these exchanges are often regulated by individual state “blue sky” laws. In this paper you will find a few simple guidelines to help keep you from getting burned.

As well, business owners interested in raising capital by becoming public companies on smaller, regulated exchanges are usually governed by state “blue sky” laws. It is important to understand the differences between these and the national securities laws, and how they can affect your public offering. As well, we have included contact names and phone numbers for all US states and Canadian provinces for answers to questions on each jurisdiction’s individual corporate laws.




How the sale of stocks, bonds, and financial instruments is regulated



Nationally

The Securities and Exchange Commission (SEC) is the United States’ federal agency charged with administering federal securities laws and providing federal oversight of the securities industry. The SEC enacts rules to implement the provisions of the federal securities laws. The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.

The SEC has jurisdiction over the main players in the securities, including securities exchanges, securities brokers and dealers, investment advisors, and mutual funds. In these areas the SEC promotes the disclosure of important market-related information, maintaining fair dealing, and protecting against fraud.

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Download the White Paper "An Overview of State Blue Sky Laws" for just $69.95.




 CAPITAL MARKETS
   Pink Sheets
   OTCBB

 BASIC BUSINESS SAVVY
   Advanced Financial Topics

 GOING PUBLIC
   Steps in the Process
   Requirements of Public Companies
   Tools & Templates
   Specialists

 REPORTING & COMPLIANCE
   Staying in SEC Compliance
   New Sarbanes-Oxley Regulations
   Structuring Your Company
   Tools & Templates

 GETTING FUNDING
   Preparing Your Business
   Finding Investors
   Pitching Investors

 FOREIGN COMPANIES
   Taking a Foreign Company Public

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