accredited investorRule 501 of Regulation D defines an accredited investor as:

Institutions and Businesses

  • Banks, insurance companies, registered investment companies, business development companies, or small business investment companies;
  • Employee benefit plans, 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 more than $5 million;

Charitable Organizations

  • Charitable organizations, corporations, or partnerships with assets exceeding $5 million;

Business Insiders

  • Directors, executive officers, or general partners of the company selling the securities;
  • Businesses in which all the equity owners are accredited investors;

Natural Person (Individual Investor)

  • A natural person with an individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person;
  • 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; or
  • A trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.

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