Here’s the definition of an accredited investor according to Investopedia:
In order for an individual to qualify as an accredited investor, he or she must accomplish at least one of the following:
1) earn an individual income of more than $200,000 per year, or a joint income of $300,000, in each of the last two years and expect to reasonably maintain the same level of income.
2) have a net worth exceeding $1 million, either individually or jointly with his or her spouse.
3) be a general partner, executive officer, director or a related combination thereof for the issuer of a security being offered.
These investors are considered to be fully functional without all the restrictions of the SEC.
An employee benefit plan or a trust can be qualified as accredit investors is total assets are in excess of $5 million.
Why do I have to be an accredited investor to register as an investor at this website?
Philosophically this is for your own protection. More practically it’s for ours.
You need to be able to understand the types of investments that could be presented to you and the risks that are involved. The SEC believes that the best way to determine this is through your net worth or annual income.
Yes, we understand that this is kind of BS and you should be able to make your own decisions. Call it an over abundance of caution or just sound business, but these are the requirements that we’re going to have to hold you to.
There’s talk of these requirements loosening but until we know more these are rules…
Thanks for your understanding.