Practice Quiz

FINRA Series 63 (NASAA)

Category - Series 63

Start a Study Session Sign up for Question of the Day
Blue Sky Laws are designed to:
  1. protect investors from fraud in their securities market transactions.
  2. protect agents, broker-dealers, and investment advisers and their representatives from spurious allegations of fraudulent activity.
  3. enhance the tourism industry within a state.
  4. favor investment in companies that engage in environmentally friendly practices.
Explanation
Answer: A - The main purpose of Blue Sky Laws is to protect individual investors from fraud in their securities market transactions. Requiring the registration of new security issues and the registration of those persons who advise individual investors as well as those involved in the purchase and sale of securities to the public are just some of the regulations designed to do this. There are no provisions designed to protect agents, broker-dealers, or investment advisers and their representatives in any regard.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz