Legislation covering businesses and securities vary widely from country to country but in general the overall purpose is to protect businesses and the investing public alike. Whenever money matters are involved, regulation is always necessary. In the US for example, several securities laws and regulations are established to protect transactions and dealings. They may cover both federal and state level regulation. There are government regulatory agencies that decide on these matters and establish some federal statutes that deal with securities regulation. For other matters, these are covered by state laws, which usually cover the trading and issuance of securities. These state laws are termed as blue sky laws.

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