Reflections on Dual Regulation of Securities: A Case Against Preemption

Abstract

Shortly after the turn of the century, a state legislator from the Midwest declared that "if securities legislation was not passed, financial pirates would sell citizens everything in his state but the blue sky."' These financial pirates were engaged in t he widespread sale of "pieces of paper" representing ownership in various corporate enterprises, 2 many of which were valueless or nonexistent.' The rural states, "having a large proportion of agriculturists not versed in ordinary business methods," had become "hunt ing ground[s]"