Accredited Investor

  • June 08, 2021 3:07 AM
    Message # 10603877
    Lorette Farris (Administrator)

    Previous: Private Placement

    To be an accredited investor, an individual or entity must meet specific income and net worth guidelines set out by the Securities and Exchange Commission (SEC).

    • The Subscriber is any natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of his or her purchase exceeds $1,000,000, excluding the value of the person’s primary residence.
    • The Subscriber is any natural person who had an individual income over $200,000 in each of the two most recent years or joint income with that person’s spouse over $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year.
    • The Subscriber is any trust, with total assets over $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Section 230.506(b)(2)(ii).  
    • The Subscriber is an organization described in Section501(c)(3) of the Internal Revenue Code, a corporation or a partnership with total assets over $5,000,000; a business development company defined in SEC 202(a)(22) of the Act.
    • The Subscriber is any director or executive officer of the issuer of the securities being offered or sold, or any manager or executive officer of the Company of that issuer.
    • As defined in the appropriate Act, the Subscriber is any bank as defined in Section 3(a)(2); insurance company as defined in Section 2 (13); registered investment company; business development company as defined in Section 2(a)(48); Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d); employee benefit plan within the meaning of Title I or if the employee benefit plan has total assets over $5,000,000.
    • Any entity in which all of the equity owners are accredited investors.

    Next: Non-Accredited Investor

    Last modified: June 08, 2021 3:10 AM | Lorette Farris (Administrator)