Laws that many states have put into force to protect the public from fraudulent securities. They regulate the selling of stocks and bonds as well as the behavior of investment companies. Individual state laws differ, but there are four general parts to blue sky laws: 1) securities firms and brokerages must be registered in the state in which securities are to be sold, 2) new securities are required to meet certain standards before they may be sold to the public, 3) state regulatory bodies must be given any financial information about the issuing of new securities, and 4) regulatory bodies must be created to enforce these laws.