What do blue-sky laws regulate?

Blue-sky laws are state-level regulations designed to protect investors from fraudulent sales practices and securities. They apply to the registration of securities offerings, the licensing of securities professionals, and the regulation of securities transactions within a particular state. These laws ensure that all securities sold to investors meet certain standards of transparency and truthfulness in marketing and sale, establishing a protective framework for the public.

The correct answer highlights the primary focus of blue-sky laws, which is to ensure compliance with state regulations governing securities, thereby safeguarding investors from potential fraud. By requiring registration and disclosure, these laws help maintain the integrity of the securities markets at the state level.