Blue Sky Bond
What is a Blue Sky Bond?
A Blue Sky Bond is a type of License & Permit bond that ensures that securities dealers and brokers comply with state securities regulations, protecting investors from fraud, misrepresentation, or unethical practices.
Protects investors from financial loss due to the misconduct or negligence of securities dealers and brokers.
Required by state governments to ensure responsible management and ethical conduct by securities dealers and brokers.
Applicant’s personal or business information, credit history, bond amount (determined by state requirements), and securities license details.
Based on credit history and bond amount, usually 1-5% of the bond amount.
