Blue"-sky" law`.
A law enacted to provide for the
regulation and supervision of investment companies in order to protect
the public against companies that do not intend to do a fair and
honest business and that offer investments that do not promise a fair
return; -- so called because the promises made by some investment
companies are as boundless or alluring as the blue sky, or, perhaps,
because designed to clear away the clouds and fogs from the simple
investor's horizon.
[Colloq.]
© Webster 1913.