ACCREDITED INVESTORS
The Law
Under federal securities laws, a company or private fund may not offer or sell securities unless the transaction has been registered with the Securities Exchange Commission (requires full disclosure per regulations) or an exemption from registration is available. Certain securities offerings that are exempt from registration (i.e., hedge funds, venture capital funds, etc.) may only be offered to or purchased by accredited investors. The principal purpose of the accredited investor concept is to identify who can bear the economic risk of investing in unregistered securities.
Note: These offerings, sometimes called private placements, involve unique risks, and you should be aware that you could lose your entire investment.
Are You an Accredited Investor?
An accredited investor is a natural person who:
A business (bank, corporation, partnership, trust, or nonprofit) may be an accredited investor if:
Under federal securities laws, a company or private fund may not offer or sell securities unless the transaction has been registered with the Securities Exchange Commission (requires full disclosure per regulations) or an exemption from registration is available. Certain securities offerings that are exempt from registration (i.e., hedge funds, venture capital funds, etc.) may only be offered to or purchased by accredited investors. The principal purpose of the accredited investor concept is to identify who can bear the economic risk of investing in unregistered securities.
Note: These offerings, sometimes called private placements, involve unique risks, and you should be aware that you could lose your entire investment.
Are You an Accredited Investor?
An accredited investor is a natural person who:
- Earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years and expects the same for the current year; or
- Has a net worth of over $1 million, alone or with a spouse (excluding the value of the person's primary residence).
A business (bank, corporation, partnership, trust, or nonprofit) may be an accredited investor if:
- Any entity in which all equity owners are accredited investors; or
- Any trust with total assets over $5 million, not formed to specifically purchase the subject securities, whose purchase is directed by a person of sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.
ENABLED INVESTORS
Information is available based on engagement. Examples of investment engagement include:
Risk Tolerances - some investors prefer very low-risk investments that will lead to conservative gains, yet others are more inclined to take on additional risk to make more significant profits.
Preferences - various segments include:
Time Frame – an investor holds onto the investment for years to decades, whereas the trader will keep the asset for a short period.
Risk Tolerances - some investors prefer very low-risk investments that will lead to conservative gains, yet others are more inclined to take on additional risk to make more significant profits.
Preferences - various segments include:
- Real Estate (residential, commercial, industrial, finance, investment, management, and opportunities).
- Opportunities (individuals, investors).
- Financial/Debt Free (individuals, investors).
- Miscellaneous (items of interest to real estate specialists and investors).
Time Frame – an investor holds onto the investment for years to decades, whereas the trader will keep the asset for a short period.