That is correct. After the Great Depression, several "blue sky laws" were created which were designed to protect those without significant wealth from fraud. Du

That is correct. After the Great Depression, several "blue sky laws" were created which were designed to protect those without significant wealth from fraud. During the Great Depression, many people invested in securities which turned out to be Ponzi schemes. In other words, they were investing in "blue sky". I am generally not for regulation to "protect people from themselves", but I generally agree with the creation of those laws. The crash in 2008 proves we do need regulation of securities to protect ourselves from destroying the global economy. Having said that, I am glad the JOBS act makes it possible for regular people to invest in private companies. I have always thought it was wrong that only rich people and founders can benefit so greatly from a startup's acquisition or IPO.