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Accredited Investor

As defined in Rule 501 under Regulation D, refers to the type of investor that is not required to receive detailed offering materials in a Regulation D offering. Generally means an individual with $200,000 in recent and expected annual income (or $300,000 when combined with one's spouse) or $1 million in net worth, a broker-dealer, bank or institution, any entity not formed for the purpose of the investment in question with at least $5 million in assets, or an entity all of whose equity owners are accredited.

Additional Comments:

In the United States, for an individual to be considered an accredited investor, they must have a net worth of at least one million US dollars or have made at least $200,000 each year for the last two years ($300,000 with his or her spouse if married) and have the expectation to make the same amount this year.

This rule came into effect in 1933 by way of the Securities Act of 1933.

Related Terms:

Rule 504 of Regulation D provides an exemption from the registration requirements of the federal securities ...

Alternative Public Offering
(APO) Somewhat misleading term used to refer to the variety of methods of going public other ...

Regulation D
Under the Securities Act of 1933, any offer to sell securities must either be registered with ...

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