Accredited investor

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Accredited investor

Refers to an individual whose net worth, or joint net worth with a spouse, exceeds $1,000,000; or whose individual income exceeded $200,000 or whose joint income with a spouse exceeded $300,000 in each of the 2 most recent years and can be expected to meet that income in the current year. More details of the definitions for investors other that individuals are found in Regulation D of the Securities and Exchange Commission.

Accredited Investor

An investor with a net worth of more than $1 million or who has had an annual income of more than $200,000 ($300,000 with a spouse) in each of the past two years. Under Regulation D, accredited investors are exempt from the requirement that no more than 35 investors are allowed to participate in the private placement of a security, company, or hedge fund. As a result, many investment vehicles target high net-worth individuals.

accredited investor

An investor with sufficient income or wealth to be exempted from the 35-person limit in contributing funds to a private limited partnership. An accredited investor must have an annual income of more than $200,000 or a net worth of $1 million, or the investor must purchase $150,000 or more of the offering with the investment representing 20% or less of his or her net worth.

Accredited investor.

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.

The qualification is based on the value of the investor's assets, or in the case of an individual, annual income.

Specifically, to be an accredited investor you must have a net worth of at least $1 million or a current annual income of at least $200,000 with the anticipation you'll earn at least that much next year. If you're married, that amount is increased to $300,000.

Institutions are required to have assets worth $5 million to qualify as accredited investors. The underlying principle is that investors with these assets have the sophistication to understand the risks involved in the investment and can afford to lose the money should the investment fail.

References in periodicals archive ?
com's membership base will be exclusive for accredited investors.
Eton has inked a definitive securities purchase agreement with various accredited investors, in a private placement of preferred stock.
7) The accredited investor definition is critically important to the NC PACES Act because purchasers qualifying as accredited investors under Rule 501 are not subject to investment limitations, while non-accredited investors are limited to investing $5,000 per offering.
The crowd--our individual accredited investors who have thus far provided over 95 percent of our loan funding--remains a priority to the company," stressed Fritton.
The House bill expands the list of accredited investors to include the following individuals, whether or not they meet income or net worth requirements:
The committee noted that if, as it expects, the SEC's analysis reveals that a "significant percentage" of individuals who currently qualify as accredited investors are not in fact capable of protecting their own interests, the commission should initiate rulemaking to revise the definition to better achieve its intended goal.
The website connects accredited investors with real estate investment opportunities across the United States.
announced today a general solicitation of accredited investors seeking investment opportunities in the new, high-tech higher education marketplace of massive open online courses, or MOOCs.
Very often, Rule 506 offerings are limited to accredited investors for the practical reason that SEC roles require very detailed and precise written offering materials if even one non-accredited investor is among the purchasers.
In those comments, NSBA endorsed a specific proposal to relax restrictions on general solicitation in private securities offerings to accredited investors.
Accredited investors are large institutions such as banks, insurance companies and registered investment companies; business entities and trusts with assets exceeding $5 million; and wealthy individuals.
6) Hedge funds, along with other private investment vehicles such as private equity funds, typically sell securities to accredited investors as one way of maintaining their exempt status.

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