Blue-Sky Laws Exist in Order To

question 94

Multiple Choice

Blue-sky laws exist in order to:

• A) protect stock underwriters from fraudulent firms.
• B) restrict the amount of profit from IPOs.
• C) control the amount of stock owned by one investor.
• D) protect investors from deceptive firms.

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Definitions:

Good Title

A legal term indicating that a property owner has legal ownership and the right to sell the property free from any liens or claims.

Misrepresented

Refers to providing false, misleading, or incorrect information, intentionally or unintentionally, about a product, service, or situation.

Insurable Interest

Any interest in property such that the owner would experience a benefit from the continued existence of the property or a loss from its destruction.

Identified Goods

Items that are designated by the buyer and seller as the specific goods involved in a contract of sale.