What do Blue Sky Laws aim to prevent?

Blue Sky Laws are state-level regulations designed primarily to prevent securities fraud. These laws require sellers of securities to register their offerings and provide financial details about the investment. The name "Blue Sky" conveys the protective intent of these laws—ensuring that investors are not misled by fraudulent schemes that can arise in an unregulated environment. By mandating disclosure and compliance, Blue Sky Laws serve to protect investors from deceptive practices and ensure they have access to necessary information to make informed decisions about their investments.

While the other options, such as market manipulation or insider trading, are also serious issues in the realm of securities and investments, Blue Sky Laws specifically target the broader spectrum of fraud associated with the offering and sale of securities. Interest rate fluctuations, although they can impact market conditions, are not within the purview of these laws. Thus, the focus of Blue Sky Laws is firmly on combating securities fraud, making that the correct response.