Exempt transactions are viewed as being safer because they are limited in scope, made only to a limited number of people known to the issuer or to a limited class of people either meeting certain income and/or net worth criteria, or made to people already well informed about the issuer, or specified transactions through a registered broker dealer.
The Statutes can be found here
The Regulations can be found here
It is essential to note that no exemption from registration provides an exemption from the fraud provisions provided for in NMSA58-13C-501. Selling securities is not like selling other products where the rule is simply buyer beware. There is a duty on the part of all persons selling securities not to make misrepresentations and not to omit facts that are necessary to understand the disclosures given (what many might call half-truths).