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What is an accredited investor?
An accredited investor is a person or entity that is allowed to participate in investments not registered with the SEC. These are typically high-net-worth individuals and companies with the means and experience to trade private, riskier investments.
According to the Securities and Exchange Commission, an individual accredited investor is anyone who:
- Earned income of more than $200,000 (or $300,000 together with a spouse) in each of the last two years and reasonably expects to earn the same for the current year.
- Has a net worth over $1 million, either individually or together with a spouse (excluding the value of a primary residence).
- Is a “knowledgeable employee” of a private fund.
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Is a financial professional who has Series 7, Series 65 or Series 82 financial securities licenses.