What Is an Accredited Investor?
Accredited investors are usually sophisticated investors who are financially savvy. In the United States, an accredited investor is someone who meets the requirements established by the Securities and Exchange Commission to participate in large-scale investment transactions.
Individuals who are accredited investors meet at least one of the following criteria:
- Earn an annual individual income of more than $200,000 or a joint annual income of $300,000 for the last two years and have the reasonable expectation of maintaining the same level of income for the current year.
- Have a net worth exceeding $1 million, either individually or jointly with his or her spouse.
- Serve as a general partner, executive officer, director, or similar role for the issuer of a security being offered.
For more information, please visit the Securities and Exchange Commission site.
What Is a Non-Accredited Investor?
A non-accredited investor is simply an investor who does not meet the Securities and Exchange Commission requirements to become an accredited investor.