Assume the Hawaii legislature passes a blue-sky law. which of
the following are correst with respect to that taw?
A, All of the other answers are correct
B, All issuers must be located in Hawaii
C, All potential investors must be located in Hawaii
D, It would provide protection in addition to federal securities
laws
Answer- Correct option is 'D'
Assume the Hawaii legislature passes a blue-sky law. It would provide protection in addition to federal securities laws. The Blue-sky law refers to state statutes, rules and regulations providing for the supervision and regulation of offers and sales of securities. Public merger must also comply with applicable blue sky laws. While Blue-sky law vary from state to state, most typically require a company making an offering of securities to register or qualify the offering before the securities can be sold in a particular states, unless a specific state exemption is available. Blue-sky law also require the registration or licensure of brokerage firms, their brokers and investment adviser representatives.
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