“Investment contract” interpreted

NAC 90.090 “Investment contract” interpreted. ( NRS 90.750 ) An “investment contract” as used in NRS 90.295 , includes: 1. Any investment in a common enterprise with the expectation of profit to be derived substantially through the efforts of a promoter or other third party; or 2. Any investment by which: (a) An offeree furnishes initial value to an offeror; (b) A portion of this initial value is subjected to the risks of the enterprise; (c) The furnishing of the initial value is induced by the offeror’s promises or representations which give rise to a reasonable understanding that a valuable benefit of some kind over and above the initial value will accrue to the offeree as a result of the operation of the enterprise; and (d) The offeree does not receive the right to exercise practical or actual control over the managerial decisions of the enterprise. (Added to NAC by Sec’y of State, eff. 11-19-92)