Click to
Tap Into the
Largest Database of Accredited Investors

» Accredited Investor Defined

Accredited Investor Leads Banner

Last Updated on February 26, 2020 by John Fischer

Any company that offers or sells its securities, under the Securities Act of 1933 (SA-1933), must officially register those securities with the SEC, or they must find an exemption from the registration requirements. SA-1933 provides companies with a range of possible exemptions. For some of the exemptions, such as those listed in rules 505 and 506 of Regulation D, a company may sell its securities to what are referred to as an accredited investor.

The federal securities laws define the term accredited investor in Rule 501 of Regulation D as:

  • A natural person must have experience in managing his personal portfolio.
  • A bank, insurance company, registered investment company, business development company, or small business investment company;
  • An employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million;
  • A charitable organization, corporation, or partnership with assets exceeding $5 million;
  • A director, executive officer, or general partner of the company selling the securities;
  • A business in which all the equity owners are accredited investors;
  • A natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million (not including their home) 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.
  • A trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.

Don’t wait, call us toll-free and speak with our professional lead consultants 1-[800-590-LEAD] or fill out the form on the homepage to request a free quote.
SEC logo

For more information please visit our mother site at Salesleads.tv

This entry was posted in General by John Fischer. Bookmark the permalink.

Comments are closed.