Abstract

In our market economy, imposing rules on capital formation makes economic sense. Well-constructed rules regarding capital formation can promote the efficient flow of capital to its highest and best use and prevent or ameliorate fraud or unfairness to investors. These rules, however, generate additional offering costs that may retard or in some cases completely choke off the flow of capital from investors to businesses. The problem with state blue sky laws is their registration requirements, which significantly impede efficient capital formation and provide no material economic or societal benefits, such as protection of investors from fraud.

Document Type

Commentary

Publication Date

5-18-2017

6-30-2017

Notes/Citation Information

Rutheford B Campbell, Jr., The Case for Federal Preemption of State Blue Sky Laws, The CLS Blue Sky Blog (May 18, 2017), http://clsbluesky.law.columbia.edu/2017/05/18/the-case-for-federal-preemption-of-state-blue-sky-laws/.

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