Over the past few weeks, I am in the process of applying to be an Accredited U.S. Investor. In the past, I heard of this terminology and I don’t know much about it. Anyway, I passed the verification and know a bot more about it. So I note some key things I know about this here for further reference.
What’s an “accredited investor”?
An “accredited investor” is a type of investor. Generally, sales of securities must be registered with the SEC unless an exemption is found. Some of the exemptions require sales to be made to accredited investors. Our application lists out the various categories of accredited investor. The Securities and Exchange Commission also has a helpful page on accredited investors here: http://www.sec.gov/answers/accred.htm
DEFINITION of ‘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. Accredited investors include individuals, banks, insurance companies, employee benefit plans, and trusts.
INVESTOPEDIA EXPLAINS ‘Accredited Investor’
In order for an individual to qualify as an accredited investor, he or she must accomplish at least one of the following:
- 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.
- have a net worth exceeding $1 million, either individually or jointly with his or her spouse.
- be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.
And this is my badge to guarantee that I’m an Accredited Investor guaranteed by VerifyInvestor.com
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