Accredited Investor
A term used by the Securities and Exchange Commission (SEC) under Regulation D to refer to investors who are financially sophisticated and have a reduced need for the protection provided by certain government filings.
Also known as "qualified purchaser". Investopedia Says:
In order for an individual to qualify as an accredited investor, he or she must accomplish at least one of the following:
1) earn an individual income of more than $200,000 per year, or a joint income of $300,000, in each of the last two years and expect to reasonably maintain the same level of income.
2) have a net worth exceeding $1 million, either individually or jointly with his or her spouse.
3) be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.
These investors are considered to be fully functional without all the restrictions of the SEC. Related Terms:
3C7
Hedge Fund
High Net Worth Investor - HNWI
Institutional Investor
Qualified Institutional Buyer - QIB
Regulation D
Retail Investor
Securities and Exchange Commission - SEC
Sophisticated Investor |