Final answer:
Blue sky laws are state regulations that govern the offering and sale of securities to protect investors against fraud. They are mostly relevant to intrastate offerings but can also affect interstate offerings. These laws predate federal securities regulations and provide a historical context of government intervention in business.
Step-by-step explanation:
The term 'Blue sky laws' refers to state securities laws in the United States that regulate the offering and sale of securities to protect the public from fraud. While these laws are indeed primarily applicable to purely intrastate offerings, they can also have implications on interstate offerings to some extent. These laws were established before the federal securities laws and are intended to prevent investment fraud by requiring sellers of new issues to register their offerings and provide financial details. This allows investors to base their judgments on reliable data.
Historical examples of government limitations on competition, such as the once prevalent monopoly of AT&T in telephone services or the regulation of fares and destinations for airlines, illustrate how government regulations have been integral in shaping the business landscape. While these examples are not directly related to blue sky laws, they provide context on how government interventions have varied to regulate different sectors over time, including securities.