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Glossary

Accredited Investor Definition


An accredited investor is a term to describe investors by the U.S. Securities and Exchange Commission (SEC) under Rule 501 in Regulation D.

How to qualify as an accredited investor for an individual:

  1. Have an earned income that exceeds $200,000 individually or $300,000 with a spouse for the previous two years. Additionally, one expects the same earned income for the current year.
  2. Have a net worth that exceeds $1 million with or without a spouse. However, this is calculated without the value of your primary residence.

How to qualify as an accredited investor for an entity:

  1. Any trust with more than $5 million in total assets, as well as not forming a trust to solely purchase the subject securities.
  2. Any entity where all equity owners are considered accredited investors.