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Accredited investor is a term defined by various
countries' securities
laws that delineates investors permitted to invest
in certain types of
higher risk investments including seed money,
limited partnerships,
hedge funds, private placements, and angel investor
networks. The
term generally includes wealthy individuals and
organizations such as
banks, insurance companies, significant charities,
some corporations,
endowments, and retirement plans.
In the United States, for an individual to be
considered an accredited
investor, he or she must. have..
- Net worth of at least one million US
dollars, not including the
value of one's primary residence or
- Made at least $200,000 each year for the
last two years
(or $300,000 together with his or her spouse if
married) and
- Have the expectation to make the same amount
this year."
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[1] This rule came into
effect in 1933 by way of the Securities Act of
1933.
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