Thursday, May 28, 2009

The Definition of An Accredited Investor

Most people do not know what an accreditor investor is.  Most accredited investors do not realize that the are accredited.  When introduced to the concept some people think that they need to make an application or pass a test. 

Being an accredited investor is actually defined by the SEC and qualifies an individual or entity to invest in ceertain investments that are exempt from registration.  

For all of the details of the rules, go to the SEC website and read the details: .  

In general, for an individual to be accredited the fall into one or more of the following:

  • a director, executive officer, or general partner of the company selling the securities; 
  • natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase;
  • a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year;

Do you fall into any one of these categories?  Do you hope and plan to some day?  Then this blog is for you.  We will expore private investments, what they are, how to read an offering, cautions, and where to find them.

Of course, this is an educational blog and before making any investment you should consolut with an attorney, accountant, or investment advisor.

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