Some investment opportunities are only available to accredited investors. These accredited opportunities are usually investments that are not registered with financial authorities. Accredited investors are financially sophisticated and have less of a need for protection from the SEC.
To be an accredited investor, you have to meet certain requirements. One way to become accredited is to make over $200,000 per year ($300,000 combined with a spouse) over the last two years. Another way is to have a net worth of at least $1 million (excluding the investor’s primary residence). Banks, insurance companies, brokers, and trusts are also considered accredited investors.
Accredited investors can invest an unlimited amount on their chosen opportunities. The SEC does not impose any limits.
See also: Regular Investor
.jpg)
