About the Corporate Securities Law of 1968
The Corporate Securities Law of 1968 regulates all offers and sales of securities in California. All securities offered or sold must be either qualified with the Commissioner of Corporations or exempted from registration by a specific Rule of the Commissioner or specific law.
Exemptions from qualification do not limit issuer liability for fraud, either criminally or civilly, but instead merely exempt the offer or sale from the cost and formalities of qualification with the Commissioner. While federally the Securities Act of 1933 and Securities Exchange Act of 1934 are separate laws dealing with the issuance and secondary sales of securities, respectively, the Corporate Securities Law of 1968 regulates offers and sales of securities from both issuers and secondary sellers.
Like federal securities laws and the blue sky laws of other states, the Corporate Securities Law of 1968 is intended to protect the public from fraud and deception in transactions involving securities. The Corporate Securities Law of 1968 achieves this regulation in part by providing statutory remedies in addition to common law remedies for those damaged in securities transactions which violate the Corporate Securities Law of 1968.