What is the difference between “Blue Skied” and “Blackout”?
The term “Blue Sky” refers to individual state securities laws. It is derived from the regulators’ original intent to protect individuals from investing in fraudulent corporations that had nothing behind them but “blue sky.” Each state, through its Blue Sky laws, establishes its own procedures for registering securities offered in that state, and also indicates the types of investments that will be exempt from such registration.
