What is the blue sky law?
The law governing the procedures of shares issuing, offering, selling is known as Securities Act and nicknamed "Blue Sky Law". Its goal is to protect potential investors from losing their money by buying shares of a corporation where they have been promised good business returns (blue sky).
It may appear obstructive, but many businessmen could exploit private or corporative funds by portraying a bright future of their corporations but in fact they plan to apply a get-rich-quick scheme. Therefore, the blue sky law forces corporations looking for funds to become more transparent, requiring disclosure of key facts of the corporation. So, the picture drew will be more realistic.
The Securities Act is generally not considered to be a part of BCA, and is particular to each state. For example, Delaware has a stronger anti-takeover policy.
