Laws looking to the regulation of investment dealers in the vending of securities, for the purpose of protecting investors from unscrupulous and dishonest dealers.

These laws do not attempt to prohibit unwise investments, but give State authority, through security commissions or banking superintendents, right to forbid sale within the State of securities which the officials believe would result in fraud upon investors.

The first important legislation was by Kansas and termed the "Kansas Blue Sky Law." Many other States, such as Maine, New Hampshire, Vermont, Ohio, Illinois, Michigan, etc., have enacted similar legislation.

The enforcement of these laws has been opposed by those who hold the view that it is an unjust species of paternalism and that States, in taking such action, exceeded their legal rights. But the United States Supreme Court has handed down a decision upholding the general principle that such legislation is within the police power of the several States.