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An accredited investor is a person or institution that the Securities and Exchange Commission (SEC) defines as being qualified to invest in unregistered securities, such as privately held corporations, private equity investments, and hedge funds.
Changes to âAccredited Investorâ Definition Could Clip the Wings of Angel Investors |. The term âaccredited investorâ is defined In Section 501 of the Securities Act of 1933 (the âActâ). Under the current test, an individual will qualify as an âaccredited investorâ if he or she: