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πΊπΈ US · US taxBlue-sky laws
Also called: state securities laws
In one line
US state-level securities laws that apply on top of federal rules when shares are offered or sold.
In plain English
Beyond the SEC, each state has its own securities rules ('blue-sky' laws). A secondary may need to comply with the laws of the states where buyer and seller sit.
If you were explaining it to a 5-year-old
On top of the national toy-selling rules, each town has its own extra rules you must also follow.
Why it matters when you sell
Blue-sky compliance is part of why private sales are handled through platforms or advisers who manage the legal details.
Related terms
Put it to use
When you're ready to go deeper, there's an optional Equity Toolkit and Report.
Sources
Primary references for this term: US SEC / Investor.gov, IRS (US tax). Our definitions are written in plain English and kept evergreen β see the glossary methodology. General information, not advice.
Educational information only β not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.