What Defines an “Accredited Investor” under SEC Rules?
An "accredited investor" is a person or entity permitted to invest in securities not registered with the SEC. Under SEC Rule 501 of Regulation D, this includes individuals with a net worth over $1 million (excluding primary residence) or an annual income over $200,000 ($300,000 with a spouse) for the last two years.
Certain entities like banks, registered investment companies, and business development companies also qualify. More recently, the definition has expanded to include individuals with certain professional certifications or knowledge.
