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State laws passed requiring registration of securities to protect the public from investing schemes are commonly called

a) Securities Exchange Acts
b) Blue Sky Laws
c) Dodd-Frank Acts
d) Sarbanes-Oxley Acts

1 Answer

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Final answer:

State-level 'Blue Sky Laws' were established to protect the public from fraudulent investing schemes by requiring the registration of securities. They differ from the federal Securities Exchange Acts, which include SEC oversight, and the Sarbanes-Oxley and Dodd-Frank Acts, both of which address financial reforms and investor protections.

Step-by-step explanation:

Laws passed requiring the registration of securities to protect the public from fraudulent investing schemes are commonly referred to as Blue Sky Laws. These laws were established at the state level prior to the federal Securities Exchange Acts, and their purpose was to regulate the sale of securities within the state and safeguard the public from investment fraud. The term "blue sky" refers to the idea of selling someone an expanse of blue sky - essentially nothing of real value, as in a fraudulent venture.

The other options given in the question refer to different regulations: The Securities Exchange Acts are federal laws that regulate the securities industry including the creation of the SEC; the Dodd-Frank Acts were established as financial regulatory reforms following the 2008 financial crisis; and the Sarbanes-Oxley Acts were enacted to protect investors from financial statement fraud after the early 2000s corporate accounting scandals.

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