Defining a Security
Most people understand that stocks and bonds are securities and know that special laws apply to securities, but many do not realize that New Mexico law defines “securities” much more broadly than just stocks or bonds. A security also includes items such as promissory notes, limited partnership interest, LLC interests and oil and gas partnerships.
In fact, a security can be any transaction in which one person gives money with the agreement that the money will be returned with a profit. Such arrangements are deemed “investment contracts” and are also defined as securities in Section 58-13C-102.DD of the New Mexico Uniform Securities Act.
The Securities Division strongly recommends you consult with a member of our staff or an experienced securities attorney before relying on any representations that your capital raising efforts will not involve the offer or sale of a “securities.”