Who qualifies as an "accredited investor"?
Under the SEC’s Rule 501, a person can qualify as an accredited investor either of two ways:
By having an individual net worth or joint net worth with a spouse exceeding $1 million at the time of the investment, excluding the value of a primary residence (and any related indebtedness); or
By having an individual annual income exceeding $200,000 in each of the two most recent years, or a joint annual income with a spouse exceeding $300,000 for those years, and a reasonable expectation of the same income level in the current year.
In addition, certain organizations/institutions qualify as accredited investors. A more complete definition is available on the SEC website here.
By having an individual net worth or joint net worth with a spouse exceeding $1 million at the time of the investment, excluding the value of a primary residence (and any related indebtedness); or
By having an individual annual income exceeding $200,000 in each of the two most recent years, or a joint annual income with a spouse exceeding $300,000 for those years, and a reasonable expectation of the same income level in the current year.
In addition, certain organizations/institutions qualify as accredited investors. A more complete definition is available on the SEC website here.
Updated on: 12/24/2020
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