An investor who meets the requirements of an “accredited investor” under Rule 501 of Regulation D by the Securities and Exchange Commission (SEC) is legally allowed to invest in venture capital funds, hedge funds, or private equity. The requirements to be considered an accredited investor are below.

Single Individuals

  • Either $1 million in net worth not including residents or,
  • have made a salary of $200k in each of the last two years

Married Individuals (filing jointly)

  • Either $1 million in net worth not including residents or,
  • have made a salary of $300k in each of the last two years

Entity (business)

  • Assets of $5 million or greater
  • Private Business Development Company

For individuals, if the monetary requirments are not met it is still possible to qualify as an accredited investor by demonstrating relevant professional knowledge private/unregistered securities through education or job experience.

Are there other ways to purchase private/unregistered stock without qualifying as an accredited investor?

What if I lose my accreditation after purchasing the private/unregistered securities?

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