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Full-Text Articles in Securities Law
Blue Sky Laws And The Recent Congressional Preemption Failure, Rutheford B. Campbell Jr.
Blue Sky Laws And The Recent Congressional Preemption Failure, Rutheford B. Campbell Jr.
Law Faculty Scholarly Articles
Laws regarding the sale of securities may be understood as responses to perceived bargaining failures. The most extreme examples of these bargaining failures are seen in instances in which investors are intentionally misled or defrauded regarding the quality of the investments they receive for their money. Even without the presence of such culpability, however, bargaining failures are likely anytime the trading parties lack sufficient, accurate information necessary to effect value-enhancing trades. When that occurs in trades for capital, the parties to the transaction are misinformed respecting the trade, expectations are not protected, and that precious commodity, capital, may be turned …
An Open Attack On The Nonsense Of Blue Sky Regulation, Rutheford B. Campbell Jr.
An Open Attack On The Nonsense Of Blue Sky Regulation, Rutheford B. Campbell Jr.
Law Faculty Scholarly Articles
The evolution of state securities laws (hereinafter "blue sky laws") in this country is a classic example of regulation that was, perhaps, initially justified and that was apparently promulgated with the best of motives, but which now is actually harmful to society. Today, blue sky laws are ineffective, philosophically unsound, and unnecessarily expensive, and they should be substantially eliminated. Because of the vested interests that have developed, however, it is unlikely that states will respond to this problem, and it will probably take action by the United States Congress to preempt the area. Such an action is appropriate and, indeed, …