With the current revival of business has come increased activity in the securities markets. Corporations are taking advantage of low money rates to refund outstanding issues and, to some extent, to obtain new money for corporate purposes. If the upturn in business proves to be substantial, rather than merely a temporary, government-induced short-time swing, the issuance of securities for the purpose of financing capital improvements will doubtless accelerate. Questions arising under the various laws, federal and state, for the regulation of the sale of securities will become increasingly important. Persons interested in the issuance and disposal of securities desire, of course, to be able to do so with the least possible delay, expense and effort. Governments have assumed a duty to provide members of the investing public with a certain amount of protection against fraud, misrepresentation and, in some cases, even their own poor judgment. The central problem of "blue-sky" legislation is to serve the desired governmental function without unduly impeding that flow of capital into industry which, it is universally conceded, is essential to sound business recovery and stability.
Russell A. Smith,
STATE "BLUE-SKY" LAWS AND THE FEDERAL SECURITIES ACTS,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol34/iss8/6