A colloquial term for state securities laws, derived from a statement that such laws were directed at unethical promoters who “would sell building lots in the blue sky.”  Although these laws vary from state to state, most contain provisions concerning (a) prohibitions against fraud, (b) regulation of broker-dealers doing business in the state, and (c) registration of securities.  Municipal securities are generally exempt from state securities registration requirements, although broker-dealers selling them are subject to many states' registration and regulatory requirements.  Compare:  LEGAL INVESTMENT.  See:  BLUE-SKY MEMORANDUM.

State laws covering the registration and sale of new securities. BMIR: See BELOW MARKET INTEREST RATE.

State securities laws pertaining to registration requirements and procedures for issuers, broker/dealers, their employees, and other associated persons of those entities.