1. Blue Sky Laws are state securities laws.

2. The Blue Sky Laws were created to regulate securities industry before the development of federal securities laws.

3. The problem with the Blue Sky Laws was that they were each state done separately and it was hard for states to manage what were, basically, national businesses.

4. The federal securities laws preempt the State Blue Sky Laws.

5. Prior to that time, regulation of securities was chiefly governed by state laws (commonly referred to as blue sky laws).

6. There are different theories about why they call them Blue Sky Laws.